RTW could close all New York & Co. stores if it files bankruptcy
RTW could close all New York & Co. stores if it files bankruptcy RTW Retailwinds (formerly known as New York & Co.) is edging closer to filing for bankruptcy.
In a filing with the Securities and Exchange Commission, RTW called a bankruptcy filing “probable,” citing the adverse impact of COVID-19 on its operations.
The retailer noted that, prior to the pandemic, it planned to accelerate its strategy to reposition itself as a digitally dominant retailer, which included the closing of 150 stores during the next 18 months. But with its business upended by the virus, RTW said it could close more than 150 locations — or it may close all its 387 stores — if it files for bankruptcy.
“The reduction of non-productive selling square feet is an integral component of the company's goal to improve productivity and profitability across its chain of stores and online,” RTW stated.
RTW brought up the possibility of bankruptcy in a filing last week. in which it said it was also likely in default under a loan agreement with Wells Fargo. RTW has entered into a forbearance agreement with Wells Fargo that calls for a reduction in available letters of credit, new repayment terms and reporting requirements, cash sweeps, and increased interest rates, among other changes to the loan.
Since the COVID-19 pandemic started, Neiman Marcus Group, Tuesday Morning, J.C. Penney, Stages Stores, True Religion and J. Crew Group have filed for Chapter 11.