Rue21 Closing all Stores after Filing for Bankrutpcy
Rue21 is closing all its stores across the country after announcing it has filed for Chapter 11 bankruptcy protection.
Rue21closing soon shouldn’t come as a big surprise. Once a staple at shopping malls, the clothing retailer has been struggling financially for years.
The company currently has 543 stores in 45 states in the U.S. including 1 at Augusta Mall.
This Isn’t the First Time Rue21 has Filed for Bankruptcy
The Pennsylvania-based clothing retailer, primarily appealing to teens, first filed for bankruptcy protection in 2003. It filed again in 2017, closing 400 stores and cutting $700 million in debt then.
Now, after filing for bankruptcy protection for a third time recently, the company says this is it.
Reuters recently reported that Rue21 management officials tried to sell the business, but wasn’t able to find a buyer that was willing to pay more than what the company would earn by liquidating the inventory.
Going Out of Business Sales Begin Soon
Rue21 won’t be open much longer. In fact, the company says going-out-of-business sales will begin soon. They plan to have all stores closed within the next 6 to 8 weeks.
Texas has the most stores with 51, followed by Georgia with 39, including the store at Augusta Mall.
Rue21 Isn’t the Only Retailer That’s Filed for Bankruptcy and Closing Stores
- In April, longtime Mall retailer Express filed for Chapter 11 bankruptcy and said it’s closing roughly 95 retail stores. The Express store at Augusta Mall, was not on that closure list.
- Fabric and crafts store Joann filed for bankruptcy in March, though stores are not expected to close at this time.
- Macy’s announced earlier this year that it’s closing 150 underperforming stores across the country by 2026. At least 50 are slated to close by the end of 2024. There are 22 Macy’s stores in Georgia, including one at Augusta Mall. The closure list has not been announced yet.
- Dollar Tree, which owns Family Dollar, is closing 600 stores this year.
- Foot Locker plans to close more than 400 underperforming stores in malls by 2026.
- Walmart has closed some stores in California and Maryland so far this year, but the retail giant also says it plans to convert or build more than 150 stores over the next 5 years.
