Lerner Stores Corp. - 1929 Specimen Stock Certificate

Specimen Stock printed by Security-Columbian Banknote Company.

There was a time when the country’s downtown retail districts consisted of three visible components: one or two local department stores, a host of variety stores, and a branch of Lerner Shops a popularly-priced nationwide chain of women’s and children’s apparel. Over the last two decades, Lerner Shops morphed into the New York & Company stores but now a Monday bankruptcy filing brings an end to a piece of American retail history. On Monday, RTW Retailwinds, the parent company of New York & Company, Fashion to Figure, and Happy x Nature stores, filed for Chapter 11 bankruptcy protection. The firm cited the challenging brick-and-mortar retail environment combined with the effects of COVID-19 store closures as major factors impacting the decision. RTW Retailwinds has been pushed into a state of organizational chaos. The retail company recently eliminated approximately 50% of its corporate workforce. In April, one half of its board of directors, including its CEO-elect, resigned. Its current merchandise stock, piled up within locations closed by COVID-19, has become outdated and declared “significantly impaired” by the company. RTW Retailwinds also missed two important July loan repayments towards its $40 million obligation with Wells Fargo. Monday’s bankruptcy filing was inevitable.