A teen clothing retailer is going out of business and closing all its stores | ABC10
Rue21, a popular teen apparel retailer, finds itself in dire straits again, filing for Chapter 11 bankruptcy protection for the third time. With plans to shutter all 540 of its stores, the company faces the grim reality of liquidating its inventory rather than attempting to salvage its business through a sale. Despite selling efforts, no bids matched the potential earnings from closing down.
Operating for over four decades under the mantra of making fashion fun and accessible, rue21 reached its peak in 2013 with 1,000 stores. However, subsequent bankruptcies in 2003 and 2017, along with the closure of 400 underperforming locations, marked a decline. Presently, the retailer spans 45 states, primarily in strip malls, regional malls, and outlet centers, with Texas boasting the highest number of stores.
The company aims to wrap up its going-out-of-business sales within the next 4-6 weeks, alongside selling off its intellectual property. Expressing uncertainty about its online presence, rue21’s website hints at updates, reflecting the tumultuous changes underway. This development follows closely on the heels of another fashion giant, Express, which also sought bankruptcy protection and announced closures of over 100 stores……….
[read more]
Rising Dough
How do bankruptcy filings and store closures of major retailers like rue21 and Express impact the companies and the broader economy, including consumers, investors, and other businesses in the retail sector?
*Click on the “Full Loaf” icon to read the full article! After you read the full article, let us know your thoughts.
Share this content:
The overall effect is often a contraction in the retail sector that can slow broader economic growth, at least in the short-term, as the market adjusts.