The parent company of New York & Company has warned that RTW Retailwinds could be the latest retailer to declare bankruptcy amid the Covid-19 pandemic.
The business has said that it is finalising a 10K filing with its auditor that will reflect a substantial doubt about its ability to continue as a going concern and the possibility it may file for Chapter 11 bankruptcy protection. Covid-19 is having a material adverse impact on its finances and has meant that stock has piled up in stores and has aged over the last two months.
“The company has already experienced substantial and recurring losses from operations, and such losses have caused a retained deficit of $164.6 million as of February 1, 2020,” RTW Retailwinds stated in the filing. “As such, the company has been considering available options, including restructuring its obligations or seeking protection under the bankruptcy laws…The company believes that seeking protection under the bankruptcy laws is probable.”
