July 13 (UPI) -- RTW Retailwinds, whose portfolio includes New York & Co. and other brands, announced Monday it has filed for Chapter 11 bankruptcy in New Jersey.
The company said it will evaluate selling its e-commerce operations and related intellectual property during bankruptcy proceedings, but it plans to close most of its brick-and-mortar stores.
"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," Sheamus Toal, chief executive officer and chief financial officer of RTW Retailwinds, said in a statement.
Toal said the pandemic has forced the company to look to limit its liabilities and examine selling portions of its businesses.
"I would like to thank all of our associates, customers and business partners for their dedication and continued support through these unprecedented times," Toal said.
RTW Retailwinds sounded the alarm about possibly filing for Chapter 11 in June, telling the Securities and Exchange Commission in its 8-K filing that it faced "substantial doubt" about its ability to continue as the pandemic went on.
The specialty retailer was first incorporated in 1918 and operates about 378 retail and outlet locations in 32 states along with a growing online presence. Along with New York & Co. RTW Retailwinds brands include Fashion to Figure and Happy x Nature.
Retail stores continue to be hit hard by the pandemic. Last month, JC Penney announced it has filed for bankruptcy and will close 154 stores. J. Crew and Neiman Marcus announced they had filed for bankruptcy in May. Brooks Brothers said it was filing for bankruptcy as well last week.