Blog Exposure – New York & Co. Acquired Women’s Apparel Retailer Fashion to Figure

Stock Monitor: Urban Outfitters Post Earnings Reporting

LONDON, UK / ACCESSWIRE / November 30, 2017 / Active-Investors issued a free report on New York & Co., Inc. (NYSE: NWY), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=NWY as the Company’s latest news hit the wire. On November 28, 2017, the Company declared that it has entered into an asset purchase deal to acquire certain assets of Fashion to Figure, including intellectual property rights related to the Fashion to Figure® brand, for a cash purchase price of $1.4 million plus no more than $1.0 million of fees and expenses. Sign up now for our free research reports at:

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Active-Investors.com is currently working on the research report for Urban Outfitters, Inc. (NASDAQ: URBN), which also belongs to the Services sector as the Company New York & Co. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, New York & Co. most recent news is on our radar and we have decided to include it on our blog post. Today’s free coverage is available at:

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The assets will be acquired by TFT Acquisition LLC, as the successful bidder at an auction run by Fashion to Figure, and will be subsequently acquired by New York & Co. late in Q4 2017.

Details of Asset Purchase Agreement

The agreement covers all intellectual property, including trademarks, tradenames, an extensive customer database, and all in-store assets, excluding inventory.

New York & Co. intends to hire certain former employees of Fashion to Figure, including members of the design, merchandising, and ecommerce teams, who are expected to join the Company during Q4 2017.

The Company will also be negotiating with certain market vendors in an effort to secure inventory for anticipated relaunch in early 2018.

The transaction is likely to close late in Q4 2017, positioning the Company to re-introduce a revitalized Fashion to Figure brand to the marketplace in early February 2018 through an online site and select Fashion to Figure stores.

New York & Co. expects to fund the entire purchase price of the acquisition of the intellectual property, as well as any subsequent inventory purchases., with cash on hand. As of October 28, 2017, the Company had $69.2 million of cash and no borrowings under its asset-based credit facility.

Acquisition will Enable New York & Co. to Enter into Growing Segment of Women’s Apparel Market

The business built by the owners of Fashion to Figure has true brand potential and has a brand platform that is compatible with New York & Co. The Company has strong name recognition with the Plus-size consumer and a very loyal consumer base, with a database of approximately 500,000 customers, that New York & Co. can effectively leverage to grow the brand, particularly online, to drive profitable future growth. This provides the Company an opportunity to enter into an underserved and growing segment of the women’s apparel market.

Gregory Scott, CEO of New York & Co., stated that the combination of Fashion to Figure’s outstanding brand equity and expertise in the Plus-size space coupled with New York & Co.’s operational expertise, omni-channel capabilities, strong digital business, and celebrity platform will enable the latter to generate significant top-line growth and sustained profits with the Fashion to Figure business while ensuring to preserve its existing brand DNA.

Fashion to Figure Filed for Bankruptcy

On November 13, 2017, Fashion to Figure filed for bankruptcy in in federal court in New Jersey. The Company intended to pursue a sale of all of its assets. At the time of the filing, the Company operated 26 stores as well as a highly popular ecommerce site. Immediately following the filing, the Company closed 7 locations and consolidated store inventory into the remaining 19 locations. Fashion to Figure believed a significant impairment occurred from an ill-timed expansion at a time when retail is changing and many retailers are shrinking their store base.

On November 22, 2017, a US Bankruptcy Court judge in New Jersey approved an order authorizing a joint venture of SB Capital Group, LLC and 360 Merchant Solutions, LLC to conduct Total Liquidation sales in each of the Fashion to Figure locations.

Stock Performance Snapshot

November 29, 2017 – At Wednesday’s closing bell, New York & Co.’s stock ended the trading session flat at $2.05.

Volume traded for the day: 151.75 thousand shares, which was above the 3-month average volume of 77.04 thousand shares.

Stock performance in the last month – up 13.89%; previous three-month period – up 13.89%; past six-month period – up 36.67%

After yesterday’s close, New York & Co.’s market cap was at $129.72 million.

The stock is part of the Services sector, categorized under the Apparel Stores industry. This sector was up 0.4% at the end of the session.

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