The parent company of New York & Company files for Chapter 11 bankruptcy protection, with plans in place to close many, if not all of its 378 stores.
This move had been on the cards for a while and the retailer also 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.
RTW has commented that it will continue to operate its business in the short term, including continuing to re-open its previously temporarily closed stores, “when and where appropriate,” along with operating its e-commerce business.
“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,” said Sheamus Toal, CEO and CFO.
“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.”
