Women’s fashion retailer New York & Company could bankrupt all or a significant portion of its stores, the parent company RTW Retailwinds, Inc. announced on Monday.
RTW Retailwinds filed for Chapter 11 bankruptcy protection with the New Jersey District Bankruptcy Court on Monday and said in a press release that it had “initiated a process of closing and liquidating businesses.”
Like other clothing retailers that are heavily committed to shopping centers, RTW Retailwinds Inc. and its brands struggled with declining pedestrian traffic long before the coronavirus pandemic, leading to an increase in retailers reporting bankruptcy. The corona virus causes the disease COVID-19.
The Lucky, JC Penney brand, the Brooks brothers, Sur La Table, Neiman Marcus, Tuesday Morning, GNC and J. Crew have registered for Chapter 11 since May.
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“The combined impact of a challenging retail environment combined with the impact of the Coronavirus (COVID-19) pandemic has had a significant financial impact on our business and we expect it to remain so in the future,” said Sheamus Toal, RTW Retailwinds CEO and CFO said in the press release.
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The company’s portfolio includes branded articles from New York & Company, Fashion to Figure and Happy x Nature as well as collaborations with Eva Mendes, Gabrielle Union and Kate Hudson. The brands have around 378 retail and outlet locations in 32 states as well as online shops.
New York & Company was founded in 1918 as Lerner Shops and renamed Lerner New York in 1992 before changing to New York & Company in 1995. The retailer was previously operated by Limited Brands, now known as L Brands, owner of Victoria’s Secret and Bath & Body Works.
According to a recent Coresight Research report, up to 25,000 stores could close this year as companies continue to feel the effects of the pandemic.
Other retailers who haven’t filed for bankruptcy are also planning shutter locations, including Victoria’s Secret, Nordstrom, and Signet Jewelers, the parent company of Kay, Zales, and Jared.
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This story is being updated.
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