Rue21 Files For Bankruptcy; Will Close 540 Stores

Rue21, a mall staple for teen apparel, is going out of business and closing all 540 of its stores within the coming weeks, Jordan Valinsky reported for CNN.

Rue21 also filed for bankruptcy in 2003. I Photo: Phillip Pessar Flickr

The Pittsburgh-based company filed for bankruptcy Thursday for the third time in its existence, signaling the end of nearly 50 years in business for the retailer, which had 1,200 locations at its peak just a few years ago.

The retailer, which has about $200 million in debt and 4,900 employees, has been struggling financially in recent years despite a 2017 bankruptcy that the company hoped would turn Rue21 around.

It also filed for bankruptcy in 2003.

In a court filing, interim CEO Michele Pascoe said that Rue21 was “negatively impacted by challenges stemming from the COVID-19 pandemic and related adverse market trends, including a shift in consumer shopping patterns from traditional brick-and-mortar retailers to online retailers and changing consumer preferences.”

Rue21 is the latest retailer to shut down.

Express filed for bankruptcy last month and closed 100 stores. 99 Cents Only Stores, a discount chain, said in April it was going out of business. Joann, the fabrics retailer, went bankrupt in March.