one more We RETAILER Is closing my doors After filing for Chapter 11 bankruptcy,
Rue21, which sells mostly teen apparel, will close all 540 of its store According to court filings submitted last Thursday, across the United States, reuters informed of.
Fashion chain has applied bankruptcy Tried to find a buyer twice before closing down. The company currently has a debt of $194.4 million.
On Monday morning, Rue21’s website was displaying the message: “Our site is being updated. check back soon.”
The company plans to close its stores in the next few months, while conducting “going out of business” sales and attempting to sell off its intellectual property.
The Warrendale, Pennsylvania-based retailer previously filed for bankruptcy in 2003 and 2017, according to reuters, After the previous bankruptcy, approximately 400 stores were closed.
About 4,900 employees will be affected by the closure. The pandemic and the shift to online retail hit the brand hard, retail dive Report. The company tried to raise more capital in 2022.
Court filings show lenders now own 85 percent of Rue21’s stock.
The retailer’s demise follows a wave of store closings by other brands across the US this year. About 1,290 stores had already closed in 2024 or were scheduled to close in the coming months.
expressMacy’s, wal-mart And dollar Tree All have announced that they will close shops as customer traffic has reduced.
Malls and shopping centers in the US and elsewhere have struggled this decade due to rapidly changing consumer habits and the rise of online shopping.
At the end of 2023, it was estimated 25 percent of malls across the United States will close by 2025.