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RTW Retailwinds voluntarily files Chapter 11 Bankruptcy

Jul 16, 2020 United States
RTW Retailwinds voluntarily files Chapter 11 Bankruptcy
As a result, the retailer expects to close a significant portion of its brick-and-mortar stores. Company expects to fully repay approximately 12.7 million US dollars in remaining loan outstanding
“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus (COVID-19) pandemic has caused significant financial distress on our business, and we expect it to continue to do so in the future. 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. I would like to thank all of our associates, customers, and business partners for their dedication and continued support through these unprecedented times”, stated Sheamus Toal, Chief Executive Officer and Chief Financial Officer of RTW Retailwinds.

The omni-channel specialty apparel retail platform has announced that it and its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey. The company has filed customary motions with the Bankruptcy Court that will authorize, upon Bankruptcy Court approval, the company’s ability to maintain operations in the ordinary course of business, including, among other things, the payment of employee wages and benefits without interruption, payment of suppliers and vendors in the normal course of business, and the use of cash collateral. These motions are typical in the Chapter 11 process and the Company anticipates that they will be approved shortly after the commencement of its Chapter 11 case.

RTW Retailwinds expects to close a significant portion, if not all, of its brick-and-mortar stores and, in connection therewith, the Company has launched a store closing and liquidation process. The company, however, will continue to operate its business in the ordinary course in the near term, including continuing to re-open its previously temporarily closed brick-and-mortar stores, when and where appropriate. RTW Retailwinds is also evaluating any and all strategic alternatives, including the potential sale of its eCommerce business and related intellectual property. The company anticipates the full repayment of the approximately 12.7 million US dollars remaining outstanding balance under the Loan Agreement by the 31st of August 2020.

RTW Retailwinds

The specialty women's omni-channel retailer with a multi-brand lifestyle platform was first incorporated in 1918 and has grown to now operate approximately 378 retail and outlet locations in 32 states while also owning a eCommerce business. The company's portfolio includes branded merchandise from New York & Company, Fashion to Figure and Happy x Nature.

Image credits: Melinda Gimpel on Unsplash

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