New York & Co. parent RTW Retailwinds Inc. has found a buyer for the retail concept.
Sunrise Brands will acquire New York & Co. and plus-size sister brand Fashion to Figure and related assets for $20 million, plus the assumption of liabilities, including honoring gift cards. As part of the deal, Sunrise will also acquire the two brands’ rental subscription businesses at nyandcompanycloset.com and fashiontofigurecloset.com, powered by monobrand rental technology firm CaaStle. The agreement is subject to approval by a Newark, N.J., federal bankruptcy court. RTW, which filed for bankruptcy on July 13, said it expects to receive approval of the sale in a September hearing date.
“We are pleased to have reached an agreement with Sunrise Brands that will allow our significant e-commerce business to continue to operate and serve our loyal customers,” RTW CEO Sheamus Toal said. “We are focused on completing this transaction as quickly as possible.”
Though RTW had reopened roughly 92 percent of its stores by the time it filed for bankruptcy, it was planning to close 378 locations. The online business has continued to operate while fashion stores shut down amid the spreading coronavirus outbreak.
The $20 million from the sale will help RTW repay the $12.7 million remaining outstanding balance under a loan agreement with Wells Fargo Bank, N.A., as well as related bankruptcy costs.
RTW was founded in 1918 by Samuel A. Lerner and Harold M. Lane under the brand nameplate Lerner shops. Ownership of the company changed hands several times, as did its name. The last change was in 2018 when the company rebranded as RTW Retailwinds Inc.