Rue21, known for its teen apparel, is set to shut down all 540 of its stores nationwide, as reported by Reuters based on court filings submitted last Thursday.
Having filed for bankruptcy twice before, the fashion chain attempted to find a buyer but ultimately decided to close its doors. Rue21 currently carries a debt of $194.4 million.
As of Monday morning, Rue21’s website displayed a message stating, “Our site is being updated. Check back soon.”
The company intends to conduct “going out of business” sales over the next few months while also seeking to sell its intellectual property.
Headquartered in Warrendale, Pennsylvania, Rue21 previously filed for bankruptcy in 2003 and 2017. After its last bankruptcy, about 400 stores were shuttered.
The closures will impact approximately 4,900 employees. The brand has struggled, especially during the pandemic, and its efforts to raise more capital in 2022 were unsuccessful, according to Retail Dive.
Lenders now possess 85% of Rue21’s stock, as indicated by court filings.
Rue21's closure follows a trend of store closures by various brands across the US this year. By 2024, around 1,290 stores had either closed or were scheduled to close.
Express, Macy’s, Walmart, and Dollar Tree are among the companies that have announced store closures due to declining foot traffic.
Malls and shopping centers in the US and elsewhere have faced challenges in recent years due to changing consumer habits and the growth of online shopping.
A projection from late 2023 suggested that about 25% of malls in the United States would close by 2025.
