The rise and fall of New York & Company, the once-beloved American mall staple and go-to destination for women's apparel for more than a century
Bethany Biron
- RTW Retailwinds, parent company of New York & Co. and Fashion to Figure, filed for bankruptcy on Monday with plans to permanently shutter a "significant portion, if not all" of its stores.
- However, for decades, New York & Co. — formerly known as Lerner Shops until 1992 — had been a thriving staple of American retail both in downtown shopping centers and traditional malls across the country.
- We took a closer look at the rise and fall of the women's apparel company over the years.
RTW Retailwinds, parent company of New York & Company and Fashion to Figure, filed for bankruptcy on Monday after more than a century in business.
The company said in a statement that it has begun the liquidation process and intends to close a "significant portion, if not all" of its stores. However, for decades, the company once thrived as a go-to destination for women's apparel.
New York & Co. got its start as a blouse store in Manhattan called Lerner Shops in 1918, eventually flourishing into a sprawling chain of women's wear stores across the US. Over the years, the popular retailer became one of the first national chains to join shopping centers and malls, establishing itself as an early mainstay of the American mall.
In 1985 it was purchased by The Limited Brands and renamed New York & Company, the brand consumers know today. Though the store remained successful through the early aughts, it eventually fell prey to the retail apocalypses and joined its mall brand peers in the struggle to compete with the e-commerce boom and dwindling foot traffic.
By 2020, years of slumping sales paired with temporary store closures during the coronavirus outbreak served as the nail in the coffin for New York & Co. We took a closer look at the rise and fall of the brand over the years.
New York & Co. was founded in 1918 as a blouse store called the Lerner Shops.
Source: New York & Co.
The company was started in New York City by Samuel A. Lerner and Harold M. Lane.
Source: New York & Co.
The business quickly expanded, growing to a total of 23 stores by 1920.
Source: Forbes
Lerner Shops was known for being "sleek and stylish" and soon became a "retail staple of America's downtowns."
Source: Forbes
Over the next few decades, Lerner Shops made strides within the retail industry, including becoming one of the first major chains to move into shopping centers and malls.
Lerner was also one of the first retail stores to integrate advanced data and computing systems into its store as the technology was developing.
Source: Forbes
The brand's success within American malls eventually caught the eye of The Limited Brands, which acquired Lerner Shops in 1985. By 1992, its name was changed to Lerner New York.
Under the leadership of The Limited Brands, Lerner spent the first several years post-acquisition reimagining its image and diversifying its product assortment for an audience of professional women.
Source: Forbes
Within its shops, it introduced a collection called New York & Company, which "was designed to emphasize the style and color of New York City fashions."
Source: Forbes
The clothing line name resonated, and in 1995, the company officially changed its name to New York & Company as we know it today.
In 2002, New York & Company was acquired by Bear Stearns Merchant Banking — a private equity company now known as Irving Capital — and became a fully independent company
By the early aughts, New York & Company had caught its stride and became a popular destination within American malls.
MIAMI, FL - MARCH 16: General view at the grand opening of New York & Company Miami store and the debut of the new Eva Mendes collection on March 16, 2017 in Miami, Florida. (Photo by Gustavo Caballero/Getty Images for New York & Company)
Buoyed by a series of profitable and successful years, New York & Co. officially went public in 2004.
To honor its momentum and its roots, the company opened its flagship store in Manhattan on Lexington Avenue in 2005.
However, as the years passed, the company found itself battling similar struggles as its shopping mall peers as consumers increasingly turned to e-commerce and foot traffic in physical stores fell.
Still, the company managed to bring on celebrity partners like actress Eva Mendes, who launched a series of collections with the brand starting in 2013.
LOS ANGELES, CA - MARCH 18: E! Entertainment correspondent Catt Sadler and actress Eva Mendes at the launch of the Eva Mendes for NY&C Spring 2014 collection with a pop-up shop at The Beverly Center on March 18, 2014 in Los Angeles, California. (Photo by Angela Weiss/Getty Images for New York & Company)
Among the brand's popular celebrity collections included a line with actress Gabrielle Union in 2015 ...
In 2018, CEO Greg Scott announced the company would rebrand to RTW Retailwinds in "a defining moment in our corporate reinvention."
Source: Businesswire
As RTW, the new vision was focused on "developing celebrity and sub-brand collections that resonate with our consumers."
Source: Businesswire
Still, even a rebranding couldn't save the company. Two years of struggling sales paired with the blow of the coronavirus pandemic led the company to file for bankruptcy on July 13.
Source: Business Insider
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