RTW Retailwinds Inc. filed for Chapter 11 bankruptcy relief on July 13, 2020, casting uncertainty over the future of its subsidiary brands, including women's apparel retailer New York & Company.
The company's CEO Sheamus Toal cited “the combined effects of a challenging retail environment coupled with the impact of the Coronavirus (COVID 19) pandemic” as the reason for the filing in a press release.
RTW Retailwinds stated that “its inventory [had] piled up in stores and distribution centers” and that it had failed to pay landlords, and vendors in April and May, CNBC reported.
Monday’s voluntary petition for bankruptcy confirmed the existence of outstanding trade debts to vendors. The company carried approximately $450 million in total debt.