A massive Pennsylvania-based retailer now closes all stores nationwide after it unexpectedly filed for bankruptcy, triggering sales.
Liquidation sales will be held at rue21 outlets across the US as bosses rush to clear the last remaining stock.
The clothing retailer has filed for Chapter 11 bankruptcy protection for the third time.
“This move comes as the company grapples with underperforming retail locations, the relentless growth of online shopping, intense industry competition, inflationary pressures, and macroeconomic headwinds that have made raising sufficient capital to fund operations challenging,” reports Ash Jurberg on NewsBreak.
The specialty retailer, which emerged from bankruptcy seven years ago after closing 420 stores, has a long history of financial struggles.
In 2002, when operating under its original name,“Pennsylvania Fashions,” the company underwent a Chapter 11 reorganization.
According to court documents, rue21 has been plagued by operational losses stemming from a combination of factors, including the aforementioned challenges and difficulties in securing adequate liquidity.
The company attempted to sell its business but failed to attract a buyer willing to pay more than it would earn from liquidating its inventory.
The clothing retailer has entered bankruptcy and bosses have announced plans to close all 540 remaining stores within six weeks, reports The US Sun.
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.
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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
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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.
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Also Read: A Massive Grocery Brand Now Files For Chapter 11 Bankruptcy
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