RTW Receives Continued Listing Standard Notice from the NYSE.
25 Junio 2020 - 3:05PM
Business Wire
Company Will Notify NYSE Whether It Intends
to Restore Compliance.
RTW Retailwinds, Inc. [NYSE:RTW], an omni-channel specialty
apparel retail platform for powerful celebrity and consumer brands,
today announced that on June 19, 2020, the Company received notice
(the “Notice”) from the New York Stock Exchange (“NYSE”) that the
Company is non-compliant under Section 802.01B of the NYSE Listed
Company Manual, as the result of the Company’s average market
capitalization over a consecutive 30 trading-day period was less
than $50 million and its stockholders’ equity was less than $50
million (“the deficiency”).
The Company has experienced substantial and recurring losses
from operations. As such, the Company has been considering
available options including restructuring its obligations or
seeking protection under the bankruptcy laws. Therefore, the
Company plans to notify the NYSE by July 6, 2020 whether it intends
to cure the deficiency and return to compliance with NYSE continued
listing requirements. Under the NYSE rules, the Company can cure
this deficiency during the 18-month period following receipt of the
Notice. As set forth in the Notice, as of June 17, 2020, the 30
trading-day average market capitalization was approximately $23.2
million and its last reported stockholders’ equity as of February
1, 2020 was approximately $16.0 million. For further information
regarding the Company’s financial position and results of
operations, please see its Annual Report on Form 10-K for the year
fiscal year ended February 1, 2020, as filed with the Securities
and Exchange Commission on June 9, 2020.
In order to avoid delisting under Section 802.01B, the Company
has 45 days from the receipt of the Notice to submit a business
plan advising the NYSE of definitive actions the Company has taken,
or is taking, that would bring the Company into compliance with the
market capitalization listing standards. If the NYSE accepts the
plan, the Company’s common stock will continue to be listed and
traded on the NYSE during the cure period, subject to compliance
with other continued listing standards, and the Company will be
subject to quarterly monitoring by the NYSE for compliance with the
plan. If the plan is not submitted on a timely basis or is not
accepted, the NYSE could initiate delisting proceedings.
The Notice has no immediate impact on the listing of the
Company’s common stock, which will continue to be listed and traded
on the NYSE under the common stock trading symbol “RTW,” but will
have an added designation of “.BC” to indicate the status of the
common shares as “below compliance.” The current noncompliance with
the standards described above does not affect the Company’s ongoing
business operations or its reporting requirements with the
Securities and Exchange Commission, nor does it trigger any
violation of its asset-based credit facility or other
obligations.
About RTW Retailwinds
RTW Retailwinds, Inc. (together with its subsidiaries, the
"Company") is a specialty women's omni-channel retailer with a
powerful multi-brand lifestyle platform providing curated fashion
solutions that are versatile, on-trend, and stylish at a great
value. The specialty retailer, first incorporated in 1918, has
grown to now operate 385 retail and outlet locations in 35 states
while also growing a substantial eCommerce business. The Company's
portfolio includes branded merchandise from New York & Company,
Fashion to Figure, and Happy x Nature, and collaborations with Eva
Mendes, Gabrielle Union and Kate Hudson. The Company's branded
merchandise is sold exclusively at its retail locations and online
at www.nyandcompany.com, www.fashiontofigure.com,
www.happyxnature.com, and through its rental subscription
businesses at www.nyandcompanycloset.com and
www.fashiontofigurecloset.com. Additionally, certain product, press
releases and SEC filing information concerning the Company are
available at the Company's website: www.nyandcompany.com.
Forward-looking Statements
This press release contains certain forward-looking statements,
including statements made within the meaning of the safe harbor
provisions of the United States Private Securities Litigation
Reform Act of 1995. Some of these statements can be identified by
terms and phrases such as “expect,” “anticipate,” “believe,”
“intend,” “estimate,” “continue,” “could,” “may,” “plan,”
“project,” “predict,” and similar expressions and references to
assumptions that the Company believes are reasonable and relate to
its future prospects, developments and business strategies. Such
statements, are subject to various risks and uncertainties that
could cause actual results to differ materially. Factors that could
cause the Company's actual results to differ materially from those
expressed or implied in such forward-looking statements include,
but are not limited to, (i) the risks associated with the spread of
COVID-19 and its impact on the Company's sales and supply chain
including the Company's store closures as a result therefrom and
significant declines in revenues caused thereby, and that the
Company has been considering available options including
restructuring its obligations or seeking protection under the
bankruptcy laws in which case there will likely not be any value
distributed to its shareholders and its shares could be cancelled
for no consideration; (ii) the Company's dependence on mall traffic
for its sales and the continued reduction in the volume of mall
traffic; (iii) the Company's ability to anticipate and respond to
fashion trends; (iv) the impact of general economic conditions and
their effect on consumer confidence and spending patterns; (v)
changes in the cost of raw materials, distribution services or
labor; (vi) the potential for economic conditions to negatively
impact the Company's merchandise vendors and their ability to
deliver products; (vii) the Company's ability to open and operate
stores successfully; (viii) seasonal fluctuations in the Company's
business; (ix) competition in the Company's market, including
promotional and pricing competition; (x) the Company's ability to
retain, recruit and train key personnel; (xi) the Company's
reliance on third parties to manage some aspects of its business;
(xii) the Company's reliance on foreign sources of production;
(xiii) the Company's ability to protect its trademarks and other
intellectual property rights; (xiv) the Company's ability to
maintain, and its reliance on, its information technology
infrastructure; (xv) the effects of government regulation; (xvi)
the control of the Company by its largest shareholder and any
potential change of ownership of the Company including the shares
held by its largest shareholder; (xvii) the impact of tariff
increases or new tariffs; (xviii) the Company’s ability to develop
and execute a plan to regain compliance with the continued listing
criteria of the NYSE; (xix) risks arising from the potential
suspension of trading of the Company’s common stock on the NYSE;
and (xx) those discussed under the heading "Item 1A. Risk Factors"
in this Annual Report on Form 10-K. The Company undertakes no
obligation to revise the forward-looking statements included in
this press release to reflect any future events or
circumstances.
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Investor Relations Contact: ICR, Inc. (203) 682-8200
Allison Malkin
RTW Retailwinds (NYSE:RTW)
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