Bankrupt parent of New York & Company in new deal to sell e-commerce business
New York & Company is getting a new owner but it’s not Sunrise Brands.
RTW Retailwinds, the bankrupt parent company of New York & Company and Fashion to Figure, announced that, following a bankruptcy auction on Aug. 28, it entered into an asset purchase agreement with New York-based investment company Saadia Group LLC to sell its websites, all related intellectual property and certain other assets for $40 million, plus assumption of certain liabilities. The new agreement supersedes the prior stalking horse asset purchase agreement – for $20 million ‑ RTW entered into on Aug. 4 with Sunrise Brands.
“We are extremely pleased to have received a new, significantly higher priced purchase agreement from Saadia Group for our e-commerce business and all related intellectual property and certain other assets,” said Sheamus Toal, CEO, of RTW. “Similar to our previous agreement, the new agreement will allow our substantial e-commerce business to continue to operate and serve our loyal customers.”
The new deal is subject to approval by the bankruptcy court. A hearing is scheduled on Thursday, Sept. 3.
RTW operates approximately 328 stores in 32 states along with e-commerce sites.