RTW Retailwinds sells e-commerce business to Saadia Group

By

Gabriella Lacombe

Published
Sep 1, 2020

RTW Retailwinds, Inc., parent company of New York and Company, has sold its e-commerce business to Saadia Group, LLC, following a bankruptcy auction on Friday, August 28.

According to the company, the sale included RTW's e-commerce business and all related intellectual property,  including its websites -- www.nyandcompany.com, www.fashiontofigure.com and its rental subscription businesses at www.nyandcompanycloset.com and www.fashiontofigurecloset.com -- in addition to "certain other assets" for a total price of $40 million in cash, "plus assumption of certain liabilities, including honoring gift cards, subject to closing adjustments."

The sale to Saadia supersedes the prior stalking horse agreement with Sunrise Brands, LLC. 

RTW filed for bankruptcy in mid-July, announcing plans to shutter a large portion of its brick-and-mortar stores.

“We are extremely pleased to have received a new, significantly higher priced purchase agreement from Saadia Group for our e-commerce business and all related intellectual property and certain other assets," said Sheamus Toal, chief executive officer of RTW.

"Similar to our previous agreement, the new agreement will allow our substantial e-commerce business to continue to operate and serve our loyal customers. I remain deeply thankful to our associates, business partners and our many loyal customers for their unwavering dedication and commitment to the process and we look forward to receiving final approval in the very near future.”

B. Riley FBR, an affiliate of B. Riley Financial, Inc., is serving as the investment banker to the company; Cole Schotz P.C. is serving as its legal advisor; and Berkeley Research Group, LLC is serving as its restructuring advisor, RTW said.