New York & Co. Bankruptcy Plan Cleared for Creditor Voting

New York & Co.'s bankrupt parent will seek creditor approval of its liquidation plan that would pay unsecured creditors about a third of what they’re owed.

RTW Retailwinds Inc.'s plan would create a liquidation trust that pays creditors, funded primarily from the proceeds of going-out-of-business sales for the company’s 387 retail stores, plus the sale of its e-commerce business as a going concern.

Judge John K. Sherwood of the U.S. Bankruptcy Court for the District of New Jersey filed an order Thursday approving RTW’s disclosure statement, required for soliciting creditor votes for the Chapter 11 plan.

RTW filed ...