The parent company of the retailer New York & Co. RTW Retailwinds has warned that its ability to continue as a going concern and that it could begin preparing to file for Chapter 11 bankruptcy protection. New York & Co. has been severely impacted by the Covid-19 crisis and the restrictions that have been taken to limit its spread. Its filing with the Securities and Exchange Commission included comments that it would be reporting “a substantial doubt” whether it could survive. The company revealed that it has substantial inventory piling up in stores as well as distribution centers and with the lack of cash coming in had not made its most recent rent payments. The company is currently receiving default notices from its business partners and said it may also be in default under a loan agreement with Wells Fargo. RTW Retailwinds wrote in its SEC filing that “it does not have ability to raise additional capital at this time.”
