rue21 has filed for Chapter 11 bankruptcy and is closing all of its over 500 stores.
Reuters reported that the teen fashion retailer plans to close all of its 543 U.S. stores within the next two months while conducting large "going out of business" sales, according to court documents filed in U.S. Bankruptcy Court in Delaware. rue21 also plans to sell its intellectual property.
rue21 has not issued a press release or commented publicly on the bankruptcy as of Friday morning. The company's website appears to be down.
This is not the first time the retailer based in Warrendale, Pennsylvania has filed for bankruptcy, previously filing in 2003 and 2017, when it closed 400 stores and cut about $700 million in debt. Reuters reported that rue21 currently has approximately 4,900 employees and $194.4 million in debt.
The company was founded in 1970 as Pennsylvania Fashions Inc. and operated under various brand names until it filed for bankruptcy in 2002. It exited bankruptcy in 2003 and was renamed to rue21.
rue21 tried to sell its business but could not find a buyer willing to pay more than it would earn by liquidating its inventory and shutting down stores, Reuters reported. It has hired the financial consultant Gordon Brothers to help with store closing sales.
rue21 is the latest retailer to file for bankruptcy and close stores. In April, longtime mall retailer Express filed for Chapter 11 bankruptcy and is closing approximately 95 Express retail stores and all of the brand's UpWest stores. The fabric and crafts store Joann filed for bankruptcy in March, although its stores are not expected to close, and the U.K.-based The Body Shop announced in March its U.S. subsidiary was no longer operational and will be closing all stores.
2024-12-25 01:22798 view
2024-12-25 00:371031 view
2024-12-25 00:28613 view
2024-12-24 23:371423 view
2024-12-24 23:151868 view
2024-12-24 22:461619 view
Indianapolis Colts cornerback Kenny Moore II questioned the team's overall effort Sunday following a
Washington — House Republicans will try to advance four party-line funding bills this week, though t
A murder suspect labeled by police as willing to "do anything he can to cause harm" is the target of