RTW Retailwinds Files For Bankruptcy, May Close All Stores

Apparel retailer RTW Retailwinds has filed for Chapter 11 protection in the U.S. Bankruptcy Court of New Jersey. The retailer expects to close a significant portion — if not all — of its 378 brick-and-mortar stores as part of its financial reorganization, but will continue to operate as usual in the near term. More than 90% of its stores have reopened following closures mandated by COVID-19.

The bankruptcy filing has been expected for several weeks; RTW Retailwinds revealed in June that it might have to close all its stores if it went into Chapter 11. The retailer, with brands that include New York & Company, Fashion to Figure and Happy x Nature, is now evaluating strategic alternatives that could include the sale of its e-Commerce business and intellectual property. Pier 1 Imports, which filed for bankruptcy in February 2020, received a $20 billion bid for its online assets and IP earlier this month, and bankrupt retailer Lucky Brand is in negotiations for a similar type of deal.

“The combined effects of a challenging retail environment coupled with the impact of the COVID-19 pandemic have caused significant financial distress on our business, and we expect it to continue to do so in the future,” said RTW Retailwinds CEO and CFO Sheamus Toal in a statement. “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.”

RTW Retailwinds expects to be able to repay in full the approximately $12.7 million in outstanding loans by Aug. 31, 2020. For fiscal 2019, which ended Feb. 1, 2020, the company generated net sales of $827 million, an 8% decline from the $893.2 million generated the previous year, and comparable store sales dipped 5.4%.


Featured Event

Join the retail community as we come together for three days of strategic sessions, meaningful off-site networking events and interactive learning experiences.



Access The Media Kit


Access Our Editorial Calendar

If you are downloading this on behalf of a client, please provide the company name and website information below: