RTW Retailwinds OK’d to implement employee incentive, retention plans

By Caroline Salls

Pittsburgh, Aug. 27 – RTW Retailwinds, Inc. received court approval to implement a key employee incentive plan and a key employee retention plan, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of New Jersey.

Under the key employee plans, the company is required to file a motion requesting a claims filing deadline by Sept. 10 and use its best efforts to obtain that deadline on or before Nov. 15. In addition, a plan of liquidation and related disclosure statement must be filed by Sept. 25, the plan must be confirmed by Dec. 23, and the sale of RTW’s eCommerce business must close by Oct. 15.

RTW said there are currently 18 KERP participants, and the total potential payout under the KERP is $625,000.

Meanwhile, the five eligible KERP participants will earn a maximum total bonus of $900,000 under the incentive plan.

RTW is a New York-based retailer of women’s apparel. It filed bankruptcy on July 13 under Chapter 11 case number 20-18445.

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