"The combined effects of a challenging retail environment coupled with the impact of the Coronavirus (COVID-19) pandemic have caused significant financial distress on our business, and we expect it to continue to do so in the future," Sheamus Toal, RTW Retailwinds' CEO and CFO, said in a statement.
"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. I would like to thank all of our associates, customers, and business partners for their dedication and continued support through these unprecedented times."
The company warned in a June 3 filing with the Securities and Exchange Commission that a bankruptcy filing was a possibility. In its 10-K filing , released June 9, the company said it could ultimately close all of its stores if it were to file for bankruptcy. It added that it had already planned to close 150 stores over the next 18 months as it transitioned to be a digitally focused company.
RTW Retailwinds' stores were temporarily closed beginning in March in response to the pandemic. It said it had deferred rent payments and missed other payments to vendors.
In the June 10-K filing, RTW Retailwinds expressed doubt about the future of its business.
"The Company cannot reasonably estimate the length or severity of COVID-19. The Company's revenues, results of operations, and cash flows have been materially adversely impacted, and are expected to be further materially adversely impacted, which raises substantial doubt about the Company's ability to continue as a going concern," it said.
In April, the company disclosed that Traci Inglis, whom it had tapped to take over as CEO, had resigned from the company along with four other board members.
RTW Retailwinds operates 378 stores in 32 states. Its net sales were $827 million for fiscal year 2019.
RTW Retailwinds joins JCPenney, J. Crew, and Brooks Brothers among the apparel stores that have filed for bankruptcy since the beginning of the pandemic. More than 20 major retailers have entered bankruptcy so far this year.