A longtime favorite in teen mall fashion, Rue21 is saying goodbye as it closes all its stores.
After filing for Chapter 11 bankruptcy for the third time, the retailer is set to shut down over 540 stores across the U.S. within the next four to six weeks, according to court filings.
In the filings, the Pennsylvania-based retailer stated that they “have recently suffered operational losses stemming from, among other things, underperforming retail locations, the continued growth of online shopping and industry competition, inflation and macroeconomic headwinds, and difficulties raising capital in an amount sufficient to meet their liquidity needs and fund operations.”
Additionally, the interim CEO Michele Pascoe stated in these filings that the retailer never recovered from “challenges stemming from the COVID-19 pandemic.”
According to CNN, Rue21, which previously filed for bankruptcy in 2003 and 2017, currently employs around 4,900 people and carries a debt of nearly $200 million. The store's website, Rue21.com, also appears to be down.
Rue21 isn't the only fashion retailer facing challenges.
Last month, another once very popular clothing store, Express, announced it had filed for Chapter 11 bankruptcy and would close 95 of its U.S. locations, reflecting the trend of online shopping outpacing visits to brick-and-mortar stores.