RTW Retailwinds Inc is to sell its e-commerce business and all related intellectual property to Sunrise Brands, LLC for a cash purchase price of US$20m.
The women’s fashion retailer has entered into an asset purchase agreement with Sunrise Brands in a deal that includes the New York & Company and Fashion to Figure websites and its rental subscription businesses at www.nyandcompanycloset.com and www.fashiontofigurecloset.com.
The purchase price of $20m is in addition to assumption of certain liabilities, including honouring gift cards, subject to closing adjustments. The agreement is subject to final approval by the Bankruptcy Court.
“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,” said RTW CEO Sheamus Toal. “We are focused on completing this transaction as quickly as possible.”
RTW filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code last month and expects to close most, if not all, of its 380 brick-and-mortar stores.
The company said the action will enable it to continue its operations while it restructures – including paying its workers, suppliers and vendors.
It anticipates a court hearing to approve the sale in early September.