The corporate parent of New York & Company has filed for federal bankruptcy court protection in the latest in a growing lineup of big-name retailers that have imploded amid the coronavirus-driven economic downturn.
RTW Retailwinds said Monday (July 13) it plans to close most if not all of its 378 stores and outlets in 32 states that do business under the New York & Co. banner and Fashion to Figure, and HappyxNature brands as well.
RTW listed $405 million in assets and just under $450 million in debts in its filing with the U.S. Bankruptcy Court for the District of New Jersey.
“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus (COVID-19) pandemic have caused significant financial distress on our business, and we expect it to continue to do so in the future,” said Sheamus Toal, CEO and CFO of RTW Retailwinds, Inc., in a press release.
The owner of New York & Co., which first opened its doors in 1918, joins a growing list of retailers that have also sought protection from their creditors in federal bankruptcy court, a group that includes the Sears, JCPenney, Nieman Marcus and Pier 1.
Many other chains are dramatically reducing their footprints with massive store closings, including Party City, the Children’s Place, Starbucks, Zara and Victoria’s Secret.
RTW said there are no plans for an immediate fire sale, and that it will continue to operate and reopen its brick-and-mortar stores, 92 percent of which have opened their doors again after the coronavirus lockdown in the spring.
The retailer said it also plans to explore the sale of its eCommerce business.
“We believe that a restructuring of our liabilities and a potential sale of the business or portions of the business is the best path forward to unlock value,” said Toal.