The owner of New York & Company and Fashion to Figure announced on Monday that it has filed for Chapter 11 bankruptcy and is planning to shutter a large number – if not all – of its brick-and-mortar stores.
Extended store closures, furlough programs and base salary reductions are just some of the measures announced by U.S.-based fashion retailers such as Crocs, Ascena and G-III since the start of the week.
The retailer reported disappointing Q4 and full-year results on Thursday and announced the appointment of Traci Inglis as its new CEO, as well as a range of measures being taken to combat the spread of Covid-19.
Apparel rental services could now be taking spend away from traditional sales in an already challenged sector, and it remains to be seen if rental clothes will cannibalize retail sales over the longer term.
The New York-based womenswear retailer announced decreased sales and a net loss of $7.5 million for the second quarter ended August 3, 2019, as well as plans to exit its recently launched Uncommon Sense brand.