RTW Retailwinds, which owns women’s fashion retail chain New York & Company, cautioned in a Securities and Exchange Commission filing recently that it may file for Chapter 11 bankruptcy in response to the COVID-19 pandemic. It is in the process of finalising a summary of its financial performance to reflect ‘substantial doubt’ about its ability to continue.
The company has experienced store closures, furloughs, supply chain disruptions and terminations of certain corporate positions.RTW Retailwinds, which owns women's fashion retail chain New York & Company, cautioned in a Securities and Exchange Commission filing recently that it may file for Chapter 11 bankruptcy in response to the COVID-19 pandemic. It is in the process of finalising a summary of its financial performance to reflect 'substantial doubt' about its ability to continue.#
In the filing, RTW Retailwinds said it has not paid April and May rent to landlords, and didn’t make recent payments to many of its vendors, according to US media reports.
“The company believes without seeking protection under the bankruptcy laws it does not have ability to raise additional capital at this time,” RTW Retailwinds said in the filing.
There are 25 New York & Company stores in New Jersey. All stores have been temporarily closed since March 19.
RTW Retailwinds previously announced that it planned to close 19 New York & Company stores, four Fashion to Figure stores and four outlet stores.
Fibre2Fashion News Desk (DS)
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