NEW YORK–(BUSINESS WIRE)–RTW Retailwinds, Inc. [OTC PINK:RTWI], an omni-channel strong point apparel retail platform for great celeb and person brands, at the present time announced that it and its subsidiaries (collectively, the “Company”) beget filed voluntary petitions for relief below Chapter eleven of the Economic break Code in the US Economic break Court for the District of New Jersey (the “Economic break Court”). The Company has filed worn motions with the Economic break Court that will authorize, upon Economic break Court approval, the Company’s potential to place up operations in the smartly-liked direction of industry, including, among numerous issues, the associated price of employee wages and benefits with out interruption, price of suppliers and distributors in the customary direction of industry, and the usage of money collateral. These motions are traditional in the Chapter eleven project and the Company anticipates that they might be able to be licensed rapidly after the graduation of its Chapter eleven case.
Tiny print on the Company’s Chapter eleven project and trip-forward strategy are as follows:
- The Company expects to shut a predominant fragment, if no longer all, of its brick-and-mortar stores and, in connection therewith, the Company has launched a store closing and liquidation project. The Company, on the other hand, will proceed to attempt its industry in the smartly-liked direction in the shut to time period, including continuing to re-begin its beforehand temporarily closed brick-and-mortar stores, when and the build apart acceptable; and
- The Company is evaluating any and all strategic seemingly decisions, including the aptitude sale of its eCommerce industry and linked psychological property.
As beforehand announced, on July 2, 2020, the Company entered into Amendment No. 3 (“Amendment No. 3”) to the Fourth Amended and Restated Loan and Security Settlement and Joinder with Wells Fargo Bank, Nationwide Affiliation, as administrative agent and lender. Under Amendment No. 3, the Company anticipates the paunchy compensation of the roughly $12.7 million remaining smartly-known steadiness below the Loan Settlement by August 31, 2020.
Sheamus Toal, Chief Executive Officer and Chief Monetary Officer of RTW Retailwinds, Inc., talked about, “The combined effects of a fascinating retail surroundings coupled with the impression of the Coronavirus (COVID-19) pandemic beget triggered critical monetary be concerned on our industry, and we quiz it to proceed to mark so in some unspecified time in the future. Consequently, we mediate that a restructuring of our liabilities and a doable sale of the industry or parts of the industry is the finest route forward to liberate mark. I could possibly well settle to thank all of our pals, possibilities, and industry partners for their dedication and continued toughen by technique of these unheard of occasions.”
Further small print:
- The Company’s restructuring counsel is Cole Schotz P.C., its restructuring consultant is BRG, LLC, and its funding banker is B. Riley FBR, Inc.
- Court filings and numerous paperwork linked to the project are readily available at https://cases.primeclerk.com/RTWRetailwinds.
About RTW Retailwinds
RTW Retailwinds, Inc. (alongside with its subsidiaries, the “Company”) is a strong point females’s omni-channel retailer with a resounding multi-mark every day life platform offering curated fashion solutions which would be versatile, on-vogue, and orderly at a gigantic mark. The strong point retailer, first incorporated in 1918, has grown to now aim roughly 378 retail and outlet locations in 32 states while also rising a no doubt intensive eCommerce industry. The Company’s portfolio involves branded merchandise from New York & Company, Style to Resolve, and Elated x Nature. The Company’s branded merchandise is equipped exclusively at its retail locations and online at www.nyandcompany.com, www.fashiontofigure.com, www.happyxnature.com, and through its condo subscription businesses at www.nyandcompanycloset.com and www.fashiontofigurecloset.com. Additionally, obvious product, press releases and SEC filing files touching on the Company are readily available at the Company’s web page: www.nyandcompany.com.
Forward-taking a watch Statements
This press begin contains obvious forward-taking a watch statements, including statements made for the length of the that suggests of the correct harbor provisions of the US Private Securities Litigation Reform Act of 1995. Slightly just a few these statements can also additionally be identified by terms and phrases equivalent to “quiz,” “await,” “mediate,” “intend,” “estimate,” “proceed,” “might possibly,” “might possibly,” “belief,” “mission,” “predict,” and the same expressions and references to assumptions that the Company believes are sensible and record to its future possibilities, developments and industry strategies. Such statements, are field to just a few dangers and uncertainties that could cause true outcomes to range materially. Elements that could cause the Company’s true outcomes to range materially from those expressed or implied in such forward-taking a watch statements embody, but are no longer restricted to, (i) the dangers linked to the unfold of COVID-19 and its impression on the Company’s sales and provide chain including the Company’s store closures due to this therefrom and well-known declines in revenues triggered thereby; (ii) the Company’s dependence on mall traffic for its sales and the ongoing low cost in the volume of mall traffic; (iii) the Company’s potential to await and reply to fashion traits; (iv) the impression of customary economic stipulations and their raise out on person self belief and spending patterns; (v) adjustments in the associated price of raw gives, distribution products and services or labor; (vi) the aptitude for economic stipulations to negatively impression the Company’s merchandise distributors and their potential to impart merchandise; (vii) the Company’s potential to begin and aim stores successfully; (viii) seasonal fluctuations in the Company’s industry; (ix) competitors in the Company’s market, including promotional and pricing competitors; (x) the Company’s potential to retain, recruit and prepare key personnel; (xi) the Company’s reliance on third parties to administer some aspects of its industry; (xii) the Company’s reliance on foreign sources of producing; (xiii) the Company’s potential to give protection to its emblems and numerous psychological property rights; (xiv) the Company’s potential to place up, and its reliance on, its files technology infrastructure; (xv) the outcomes of executive regulation; (xvi) the control of the Company by its biggest shareholder and any doable alternate of ownership of the Company including the shares held by its biggest shareholder; (xvii) the impression of tariff increases or contemporary tariffs; (xviii) dangers coming up from the delisting of trading of the Company’s smartly-liked stock on the NYSE; (xix) dangers and uncertainties concerning to the Chapter eleven cases, including but no longer restricted to, the Company’s potential to originate Economic break Court approval with appreciate to motions filed in the Chapter eleven cases; (xx) the outcomes of the Chapter eleven cases on the Company and on the pursuits of numerous constituents; (xxi) Economic break Court rulings in the Chapter eleven cases and the discontinue result of the Chapter eleven cases in customary; (xxii) the length of time the Company will aim below the Chapter eleven cases; (xxiii) dangers linked to third celebration motions in the Chapter eleven cases; (xxiv) the aptitude unwanted side effects of the Chapter eleven cases on the Company’s liquidity or outcomes of operations and increased factual and numerous knowledgeable prices critical in the Chapter eleven cases; (xxv) the impression of the Company’s potential to successfully implement planned store closures; (xxvi) uncertainty linked to evaluating and ending any strategic or monetary substitute, as smartly because the Company’s potential to implement and ticket any anticipated benefits linked to any substitute that would be pursued; (xxvii) the Company’s liquidity and talent to proceed as a going anxiety; (xviii) dangers linked to any default below the Company’s debt settlement; (xxix) dangers linked to the Company’s potential to compose funds on and to repay or refinance the Company’s debt or generate sufficient money; and (xxx) those discussed below the heading “Item 1A. Likelihood Elements” in the Company’s Annual Document on Glean 10-K for fiscal twelve months 2019. The Company undertakes no obligation to revise the forward-taking a watch statements included on this press begin to mediate any future occasions or cases.