A massive clothing company now closes in New York after filing for an unexpected bankruptcy, leading to giant sales nationwide.
Teen retailer rue21 is closing all its 543 stores across the United States after filing for Chapter 11 bankruptcy for the third time in the past two decades.
The company plans to shutter over 20 locations across the state amid bankruptcy restructurings.
“The steady streak of retail bankruptcies and store closures in recent years has significantly affected New York’s shopping landscapes,” reports Ash Jurberg.
“Analysts cite the growth of e-commerce, the lingering effects of the pandemic, and intense competition for consumer dollars as critical factors.”
The company, which has been in business since 1976, specializes in casual apparel and accessories for young men and women.
In court filings, rue21 stated that attempts to find a buyer for the company at its current valuation were unsuccessful.
“It became clear that offers to buy the debtors’ assets at their current worth could not exceed the expected profits from selling off the closing stores and assets,” the filing read.
As a result, the company will pivot to liquidating all store merchandise and assets. Rue21 has hired third-party firms to manage the closing sales and prepare each location to be handed back over to landlords.
This marks the struggling retailer’s third bankruptcy. Rue21 filed for Chapter 11 protection in 2017, which led to the closure of around 400 stores then.
Before that, the chain underwent another bankruptcy restructuring in 2003.
Court documents seen by Reuters revealed the company has more than $190 million of debt.
The chain has 540 stores across the US and 4,900 workers are set to be impacted.
Outlets are to slam shut within four to six weeks, according to court papers.
Bosses also announced plans to sell the company’s intellectual property.
Execs identified the rise of online shopping and changing consumer trends as reasons behind the bankruptcy.
Michele Pascoe, the interim CEO, also alluded to the impacts of competition and inflation.
At its peak, the company had more than 1,000 stores across the US.
For more news and updates like this, opt-in for push notifications.
Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
Other Economy News Today
A popular Italian restaurant now announces an unexpected closure after nine years in business, according to an email sent to customers.
Italian Eatery, located in south Minneapolis, Minnesota, told its long-time customers that it planned to shut its doors.
The beloved restaurant, also known as ie, also plans to close its sister restaurant un dito, known for its Sicilian seaside street food, per The US Sun.
They have not announced a closing date but are expected to close between late May and mid-June, according to Bring Me The News.
“As we prepare to close our doors at ie and un dito, we’d like to extend a heartfelt invitation for you to join us for our final months of service,” an email to customers from Carrara $ Co. read.
“Gather with us at the table and let us reminisce over the incredible memories we’ve created together and cherish the moments shared over the past nine years.”
Italian Eatery has been a popular spot since its opening in 2016 and is known for its full-service drinks and dining near Lake Nokomis.
Un dito is a 400-square-foot space that specializes in sips and snacks or afternoon gatherings like you would see in Italy, according to its website.
The restaurant’s “Last Supper” reservations will be released every week and shared in weekly newsletters, according to its website.
“As always, we will continue to reserve walk-in tables at both ie + un dito for our beloved neighborhood,” the announcement read, according to the outlet.
Carrara & Co. also owns due, a focacceria and Italian market in St. Paul, Minnesota that the company calls “Italian Eatery’s spawn, aka quirky little brother,” according to its website.
Despite the Minneapolis closures, due will remain open.
“I’m pleased to inform you that all other Carrara & Co operations remain unaffected, including Due Focacceria, and we are even expanding our services,” according to a statement, reported by NBC affiliate KARE.
For more news and updates like this, opt-in for push notifications.
Also Read: A Massive Grocery Brand Now Files For Chapter 11 Bankruptcy
Market News Published Daily 📰
Don’t forget to opt-in for push notifications so you don’t miss a single article!
Also, thank you to all of our blog sponsors.
This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
Scroll below to view my stock purchases this month!
You can also follow me on X (Twitter), Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.
Frank Nez’s Stock Portfolio
Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?
Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.
11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.
Recommended For You ✨
About The Author
Leave your thoughts below.
For more news and updates like this, opt-in for push notifications.