Rue21 Files for Bankruptcy Protection
Teen clothing retailer Rue21 has filed for Chapter 11 bankruptcy protection in a Pennsylvania court. Rue21 said it has entered into agreements with some of its lenders to reduce its debt and provide additional capital in support of its restructuring. The company, which operates more than 1,100 stores and has listed its assets and liabilities in the range of $1 billion and $10 billion, does expect to continue business as usual throughout the bankruptcy process. Rue21 also said that it may evaluate more store closings in addition to the previously announced 400.
Total Retail’s Take: Rue21 is the latest addition to a growing list of retailers which have filed for bankruptcy in 2017. It's becoming harder and harder for brick-and-mortar, mall-based retailers to draw customers into stores as more shoppers prefer shopping online. Rue21’s CEO, Melanie Cox, believes this restructuring will result in a “stronger and more sustainable Rue21 for our customers, vendors and business partners.”