Rue 21, a popular clothing and accessories retailer with stores across the country, has filed for Chapter 11 bankruptcy protection.
Per court documents filed in the U.S. Bankruptcy Court in the District of Delaware, the company plans to shut down all 540 of its stores and initiate the liquidation process through going-out-of-business sales.
Despite efforts to sell the business prior to bankruptcy, Rue 21 was unable to secure any viable buyers.
The primary reason for Rue 21’s bankruptcy, according to the court documents, was its substantial $194.4 million debt burden.
Bidenomics at work!
— RWC (@dirich1955) May 4, 2024
Rue21 files for bankruptcy, will close all stores https://t.co/Lo8XUUFu8Q #FoxBusiness
Fox Business reported:
Troubled retailer Rue21 – once a mall staple – filed for Chapter 11 bankruptcy protection, and plans to shutter all its stores and sell all its intellectual property.
This marks the third time the company has filed for bankruptcy as it struggles to continue operating.
According to court documents filed in the U.S. Bankruptcy Court in the District of Delaware, the company plans to close its stores and implement “going out of business” sales.
The company has about 540 stores in the U.S., according to its website.
Reuters reported the company tried to sell its business, but it didn’t secure a buyer that was willing to pay more than what the company would earn by liquidating its inventory.
How bout them bidenomics eh ???
— Red Voter (@Rickcb7) May 4, 2024
Rue21 files for bankruptcy, will close all stores https://t.co/ZNWSJNkFmd #FoxBusiness
Rue 21 is closing all stores after filing Chapter 11 bankruptcy.
— SaraGerre (@SaraGerre) May 4, 2024
Another one bites the dust, but we are continually told how great the economy is doing by our government and mainstream media. Hundreds of Dollar Tree stores are closing as well & with tax rates heading towards… pic.twitter.com/BwFqnxXAXo
