Store closing sales have begun at all New York & Company stores across the country.
The wear-to-work retailer is conducting going-out-of-business sales at its roughly 380 outposts — two weeks after parent RTW Retailwinds Inc. went bankrupt. Customers can expect initial discounts of up to 60% off of original prices for all in-store merchandise, including women’s clothing, accessories and shoes.
Financial and advisory services firms B. Riley Financial Inc., through its affiliate Great American Group, and Tiger Capital Group announced today that the liquidation sales would last about eight to 10 weeks or until all products are sold. The length of the sale will vary by location, and store furniture, fixtures and other equipment in the company’s units will also be available for purchase. (All sales will be final.)
“New York & Company offers a versatile array of women’s fashion-wear that is on-trend and stylish at a great value,” said Scott Carpenter, president of retail solutions at B. Riley’s Great American Group. “We encourage customers to shop early for the very best selection as the store closing sales will last for a limited time only.”
According to the firms, safety measures have been put in place for guests stopping at New York & Company stores amid the coronavirus pandemic.
At the end of the liquidation process, RTW Retailwinds plans to terminate all of its approximately 1,225 store workers. It has received approval for a $1.2 million store bonus program to incentivize employees to stay on through the completion of the liquidation. Employees will receive payouts based on 12% of their salaries during the closure period, or 2.5% of their annual salaries, for an average payout of $985.
After warning in multiple Securities and Exchange Commission filings that it could be headed toward bankruptcy, RTW Retailwinds sought Chapter 11 protection on July 13. It listed estimated liabilities of between $100 million and $500 million — the same range as its estimated assets.
“The combined effects of a challenging retail environment coupled with the impact of the coronavirus pandemic have caused significant financial distress on our business, and we expect it to continue to do so in the future,” CEO and CFO Sheamus Toal said at the time. “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.”