Rue21 Rumored to Be Filing for Bankruptcy
Teen clothing retailer Rue21 is preparing to file for bankruptcy. Bloomberg reports a filing could happen as early as this month. Previously, the retailer was purchased for $1 billion in 2013 by private equity firm Apax Partners. Rue21 currently operates over 1,000 stores. “Rue21 has been working to improve its operations and enhance its liquidity position, and has been actively engaged with its lenders and bondholders to explore the best path forward,” the company said in a statement to the press.
Total Retail’s Take: Rue21 is the latest in a long list of retailers that have filed for bankruptcy in 2017. Just this past week, footwear brand Payless ShoeSource announced it would be filing for bankruptcy and closing 400 store immediately. Many traditional brick-and-mortar retailers have been challenged by a growing online environment and less foot traffic to malls. Teen apparel brands have been particularly hard hit, with Wet Seal going out of business, Aeropostale filing for bankruptcy, and Abercrombie & Fitch continues to struggle.