Customers will have the chance to grab deals during the next four to six weeks as the company clears out its stock, but after that, the 40-year-old chain will be permanently closed. Rue21 once reached a high of 1,200 locations.
Clearance discounts are expected to start between 20 and 50 percent off, eventually reaching up to 90 percent to ensure remaining items are sold.
Attempts were made to sell the company, but according to court documents, no offers would generate as much revenue as shutting down and liquidating the stock.
Rue21 stores are spread throughout 45 states, with Texas having the highest number at 51 stores, followed by Georgia with 39, and both Florida and North Carolina each with 30 locations.
As of this weekend, Rue21’s website displayed a message that it was “being updated.” This update is likely preparing for the closing sale, which will be available online as well as in stores. The 4,900 employees will continue working until the stock is fully cleared.
Rue21, headquartered in Warrendale, Pennsylvania, has filed for bankruptcy twice previously.
Following its first bankruptcy in 2003, Rue21 saw a period of growth and, under its motto that “fashion should be fun and accessible to all,” expanded to operate over 1,200 stores at its peak in 2013.
However, financial troubles arose again, and in 2017, Rue21 entered bankruptcy once more to reorganize—closing 400 underperforming stores and renegotiating leases.
Now, with this latest Chapter 11 bankruptcy filing, all stores will be closing. According to court documents, “going out of business sales” are set to take place over the next four to six weeks in all locations. The company currently carries around $200 million in debt.
Rue21 is also selling its brand name and intellectual property, which could allow a competitor to acquire it, potentially reopening it as a smaller chain or reviving it online.
