Item 1.01 Entry into a Material Definitive Agreement.
On August 3, 2020, RTW Retailwinds, Inc. and its wholly-owned direct and
indirect subsidiaries (the "Company") entered into an asset purchase agreement
with Sunrise Brands, LLC for the sale of its eCommerce 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 for a cash purchase
price of $20 million plus assumption of certain liabilities, including honoring
gift cards, subject to closing adjustments. The agreement is subject to final
approval by the Bankruptcy Court. The above description is subject to the asset
purchase agreement which is furnished as Exhibit 99.2 hereto.
On July 13, 2020, the Company filed voluntary petitions for relief under Chapter
11 of the Bankruptcy Code ("Chapter 11") in the United States Bankruptcy Court
for the District of New Jersey (the "Bankruptcy Court"). The Company has
requested joint administration of its Chapter 11 cases under the caption In re:
RTW Retailwinds, Inc., et. al., Case No. 20-18445. The Company anticipates a
Court hearing to approve the sale in early September.
Item 7.01 Regulation FD Disclosure.
On August 4, 2020, the Company issued a press release announcing that it has
entered into an asset purchase agreement with Sunrise Brands, LLC for the sale
of its eCommerce business and all related intellectual property. The press
release is furnished as Exhibit 99.1 hereto.
The information, including Exhibit 99.1 hereto, the Company furnished under Item
7.01 of this report is not deemed "filed" for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that section. Registration statements or other documents filed
with the Securities and Exchange Commission shall not incorporate this
information by reference, except as otherwise expressly stated in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibit
Exhibit No. Description
99.1 Press release issued on August 4, 2020
99.2 Asset Purchase Agreement by and among RTW Retailwinds, Inc., the
other sellers party hereto, and Sunrise Brands, LLC dated as of
August 3, 2020
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