Teen clothing store rue21 has filed for Chapter 11 bankruptcy protection for the third time and intends to shut down all 540 of its stores. Court records show that despite efforts to sell the business, no bids matched the potential earnings from closing the stores and selling off the inventory.
The retailer, headquartered in Warrendale, Pennsylvania, previously declared bankruptcy in 2003 and 2017. For the past 44 years, rue21 has operated under the motto that “fashion should be fun and accessible to all.” At its peak in 2013, the company had 1,000 stores. Following the 2017 bankruptcy filing, rue21 closed 400 “underperforming” locations and restructured store leases.
RELATED: Express Files for Chapter 11 Bankruptcy, Will Close 95 Stores
Currently, the retailer operates over 540 brick-and-mortar stores in 45 states across the U.S., situated in strip malls, regional malls, and outlet centers as per court documents. Texas leads with 51 stores, followed by Georgia with 39, and Florida and North Carolina tied at 30 each. The company anticipates completing “going out of business sales” at all locations within the next 4-6 weeks, although the exact start date is uncertain.
RELATED: Red Lobster Considering Filing For Chapter 11 Bankruptcy
Simultaneously, rue21 will conduct a sale of its intellectual property. The company’s website, as of Friday morning, indicated that updates were underway and urged visitors to return later. This development follows closely after fashion retailer Express filed for Chapter 11 bankruptcy and unveiled plans to shut down more than 100 locations.
