Women's specialty retailer New York & Co. Inc. said Nov. 28 that it has entered into an agreement to buy certain assets of U.S. plus-size fashion retailer Fashion to Figure for $1.4 million.
New York & Co. said it will pay no more than $1 million in fees and expenses to Fashion to Figure. The deal includes all intellectual property — trademarks, trade names, customer database — of Fashion to Figure.
TFT Acquisition LLC successfully bid for Fashion to Figure's assets as part of the plus-size retailer's ongoing Chapter 11 reorganization. Subsequently, New York & Co. said it will buy those assets from TFT late in the fourth quarter of fiscal 2017.
New York & Co. will also negotiate future lease terms with certain existing landlords of Fashion to Figure stores where it seeks to maintain a presence. The company added that it will hire some former employees of Fashion to Figure, including members of the design, merchandising and e-commerce teams. They are expected to join the company during the fourth quarter of fiscal 2017.
Fashion to Figure's inventory is not part of the asset sale deal. New York & Co. said it will negotiate with certain vendors to obtain some of the brand's existing inventory as it prepares to relaunch the Fashion to Figure brand in early February of 2018.
New York & Co. said it expects to fund the deal, as well as any inventory purchases, with cash on hand.
