Major Retail Chain Closes All 540 Mall Locations


Rue21, a popular teen fashion retailer found in malls across the United States, will be closing all 543 of its stores.

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 has filed for Chapter 11 bankruptcy and will close all 543 stores within four to six weeks
Rue21 has filed for Chapter 11 bankruptcy and will close all 543 stores within four to six weeks
Rue21 is closing all 543 stores and will clear its stock over the next four to six weeks in clearance sales
Rue21 is closing all 543 stores and will clear its stock over the next four to six weeks in clearance sales
Rue21 will start a sale to clear all its stock. Around 5,000 staff work at the retailer
Rue21 will start a sale to clear all its stock. Around 5,000 staff work at the retailer

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.

Interim CEO Michele Pascoe stated in a court filing that the retailer was “badly hit” by the shift to online shopping, a trend that accelerated during the COVID-19 pandemic.

Retail expert Neil Saunders criticized the brand’s positioning, citing “the growing irrelevance of the brand to teen consumers.”

“Rue21 does not have a very compelling proposition and is losing customers to other retailers and to cheaper and more interesting fashion platforms like Shein,” said Saunders, managing director of GlobalData, in an interview with CNN.

“There is still a big question mark over whether the retail market needs Rue21 to exist.”

Rue21 joins the list of retailers filing for bankruptcy and closing stores.

In April, Express—a mall staple—also filed for bankruptcy and announced it would shut down 95 of its Express locations along with all UpWest stores.

Rue21's website was down over the weekend
Rue21’s website was down over the weekend
The West Coast brand - which has shops in California, Texas, Arizona and Nevada - announced last week that all 371 stores would shutter though it did not give a timeline for the closures. Pictured: the first 99 Cents store ever opened at La Tijera Boulevard
The West Coast brand – which has shops in California, Texas, Arizona and Nevada – announced last week that all 371 stores would shutter though it did not give a timeline for the closures. Pictured: the first 99 Cents store ever opened at La Tijera Boulevard

In the same month, the discount chain 99 Cents Only Stores announced it would be shutting down all 371 locations as it went out of business.

Loyal customers of 99 Cents Only have been rushing to California stores, clearing shelves to snag last-minute deals.

At the same time, in April’s third bankruptcy, the national coffee and high-end grocery chain Foxtrot also announced it would “shut all its stores with immediate effect” – a move that left both staff and customers shocked.

Founded in 2014 in Chicago, Foxtrot had 33 stores across Chicago, Austin, Dallas, and Washington DC.


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