rue21 is closing all 500 of its locations and has declared bankruptcy under Chapter 11.
According to court documents filed in the U.S. Bankruptcy Court in Delaware, the adolescent apparel retailer intends to close all 543 of its U.S. stores over the next two months while conducting significant “going out of business” specials, as reported by Reuters. Additionally, rue21 intends to sell its intellectual property.
As of Friday morning, rue21 had not released a press release or made any public remarks regarding the bankruptcy. It looks like the business’s website is down.
rue21 Has Filed Twice For Bankruptcy
The Warrendale, Pennsylvania-based company has filed for bankruptcy before; in 2003 and 2017, it did so after closing 400 locations and paying off over $700 million in debt. According to Reuters, rue21 presently employs about 4,900 people and owes $194.4 million.
Originally established as Pennsylvania Fashions Inc. in 1970, the business went by a number of brand names before declaring bankruptcy in 2002. After declaring bankruptcy in 2003, it changed its name to rue21.
According to Reuters, rue21 attempted to sell its company but was unable to find a buyer prepared to pay more than what it would make by selling its inventory and closing its outlets. Gordon Brothers, a financial consultant, has been brought in to assist with store closure sales.
The most recent retailer to declare bankruptcy and shut down operations is rue21. The well-known mall retailer Express filed for Chapter 11 bankruptcy in April and is liquidating all 95 of its UpWest locations as well as 95 Express retail locations. While its stores are not anticipated to collapse, the fabric and craft business Joann filed for bankruptcy in March. Meanwhile, The Body Shop, a U.K.-based company, said in March that its U.S. affiliate had ceased operations and would be liquidating all of its locations.
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