RTW Retailwinds (OTCMKTS:RTWI), formerly known as New York & Co., has filed for Chapter 11 bankruptcy protection.
Here’s are a few things to know about the New York & Co. bankruptcy.
- The bankruptcy was filed with the United States Bankruptcy Court for the District of New Jersey.
- New York & Co. plans to continue operations throughout the process.
- The fashion retail company is planning to close down most, if not all, of its physical retail locations.
- It’s also planning to start liquidation sales at its stores because of this.
- Adding to this, the company is looking at other strategic alternatives.
- It notes that this includes the possible sale of its e-commerce business and the intellectual property connected to it.
Sheamus Toal, CEO and CFO of RTW Retailwinds, said this about the New York & Co. bankruptcy.
“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. As a result, 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. I would like to thank all of our associates, customers, and business partners for their dedication and continued support through these unprecedented times.”
RTWI stock was down 10.6% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.