RTW Retailwinds (RTW) Announces Suspension of Trading on NYSE

RTW Retailwinds, Inc. (NYSE: RTW), an omni-channel specialty apparel retail platform for powerful celebrity and consumer brands, today announced that on July 6, 2020, the Company received confirmation that the New York Stock Exchange (“NYSE”) will apply to the Securities and Exchange Commission to delist the Company’s common stock upon completion of all applicable procedures, including any appeal by the Company of the decision. Trading of the Company’s common stock on the NYSE was suspended on July 6, 2020. The Company does not intend to appeal the decision.

As a result, the Company’s trading of its common stock commenced on July 7, 2020 on the OTC Pink, under the symbol “RTWI.”

The Company’s transition to the OTC Pink does not affect the Company’s business operations, nor does it trigger any violation of its asset-based credit facility or other obligations.

As previously reported, on June 19, 2020, the Company received notice from the 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. As required by Section 802.02 of the NYSE Listing Rules, on June 25, 2020, the Company issued a press release disclosing the fact that it has fallen below the continued listing standard.

Given the Company’s challenging financial situation as a result of the significant downturn in business that is exacerbated by store closures due to COVID-19, the Company is unable to take advantage of the cure process specified in Section 802.02 of the NYSE Listing Rules. 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. For further information regarding the Company’s financial position and results of operations, please see its Annual Report on Form 10-K for the fiscal year ended February 1, 2020, as filed with the Securities and Exchange Commission on June 9, 2020.

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