WASHINGTON — Teen apparel retailer rue21 has filed for Chapter 11 bankruptcy protection for a third time and plans to close all of its 540 stores. , rue21 attempted to sell its business, but none of the bids were as much as could be earned through shutting down its stores and liquidating its inventory.
The Warrendale, Pennsylvania-based retailer, which previously filed for bankruptcy in 2003 and 2017, operated for the last 44 years under the motto that “fashion should be fun and accessible to all." At its peak in 2013, rue21 had 1,000 stores. After filing for bankruptcy in 2017, it closed 400"underperforming" locations and renegotiated store leases.
The retailer currently operates more than 540 brick-and-mortar stores in 45 states around the U.S. with locations in strip malls, regional malls, and outlet centers, according to court filings. Texas has the most stores with 51, followed by Georgia with 39 stores and Florida and North Carolina are tied for third-most with 30 locations in each state.
The company expects to complete the"going out of business sales" at all of its locations within the next 4-6 weeks. It's unclear when those closing sales may begin. It will be simultaneously running a sale for rue21's intellectual property.