RTW Retailwinds voluntarily files Chapter 11 bankruptcy
July 14, 2020 - United States Of America
RTW Retailwinds, an omni-channel specialty apparel retail platform for powerful celebrity and consumer brands, recently announced it and its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the US bankruptcy court in New Jersey district. It expects to close a significant portion of its brick-and-mortar stores.
The company has already launched a store closing and liquidation process.
It will, however, 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, the company said in a press release.
It is evaluating strategic alternatives, including the potential sale of its e-commerce business and related intellectual property.
“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. 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,” company chief executive officer and chief financial officer Sheamus Toal said.