Modell's, New York & Company Closing Bridgewater Locations

BRIDGEWATER, NJ — Liquidation sales have begun at both Modell's Sporting Goods and New York & Company locations in Bridgewater. Both stores are permanently closing and are located in the Somerset Shopping Center off the Somerville Circle.

Modell's Sporting Goods announced in March that it will close all of its stores after filing for Chapter 11 bankruptcy.

As of Tuesday, a store employee at the Bridgewater location said the store would remain open through the end of August.

"Over the past year, we evaluated several options to restructure our business to allow us to maintain our current operations," said Modell's Chief Executive Officer, Mitchell Modell, in Business Wire. "While we achieved some success, in partnership with our landlords and vendors, it was not enough to avoid a bankruptcy filing amid an extremely challenging environment for retailers."

The parent company of New York & Company, the women's fashion retailer, filed for Chapter 11 bankruptcy protection on July 13 and as a result, the Bridgewater location was among those to be closing.

As of Tuesday, a store employee at the Bridgewater location did not know when the last day of business would be.

Sheamus Toal, CEO and CFO of RTW Retailwinds Inc., said the combined effects of a challenging retail environment and the impact of the new coronavirus pandemic caused significant financial distress on the business and it is expected to continue.

"As a result, we believe that a restructuring of our liabilities and a potential sale of the business or portions of the business is the best path forward to unlock value," he said.

Both stores have begun liquidation sales. Modell's has sales on everything up to 50 percent off and is also selling off furniture and equipment.

— Michael Woyton, Patch Staff contributed to this article

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