An unexpected retailer now closes all stores in Michigan after filing for bankruptcy for the third time, leading to 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, which has been in business since 1976, specializes in casual apparel and accessories for young men and women.
The closure will unfortunately impact the following 19 stores in Michigan:
- 4350 24th Ave. (sp#532), Fort Gratiot, MI 48059
- 32335 Gratiot Ave (Space 650), Roseville, MI 48066
- 340 W 14 Mile Road, Troy, MI 48083
- 26269 Hoover Rd., Warren, MI 48089
- 3404 Fairlane Drive, Allen Park, MI 48101
- 23000 Eureka Road (suite 1680), Taylor, MI 48180-5254
- 4000 Baldwin Rd #520, Auburn Hills, MI 48326
- 27500 Novi Rd B137, Novi, MI 48377
- 12240 South Beyer Rd B030, Birch Run, MI 48415-9488
- 3391 S. Linden Rd. (suite 130), Flint, MI 48507-3009
- 4641 Fashion Square Mall (suite C-328), Saginaw, MI 48604
- 2205 S. Mission St. (sp# 5), Mt. Pleasant, MI 48858
- 1982 W. Grand River Ave (Suite 225), Okemos, MI 48864
- 6650 South Westnedge Avenue (Space 151), Portage, MI 49024
- 1834 W Michigan Ave. (sp# 834), Jackson, MI 49202
- 3700 Rivertown Parkway SW (sp#1088), Grandville, MI 49418-3087
- 5600 Harvey Street (sp# 1032), Muskegon, MI 49444
- 3115 28th St SE Suite #F105, Grand Rapids, MI 49512
- 3390 Alpine Ave NW (Suite #105), Walker, MI 49544-1668
These stores are expected to commence going-out-of-business sales in the coming weeks before shuttering for good.
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.
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
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A massive clothing retailer is now closing all 540 stores in just six weeks after unexpectedly filing for bankruptcy.
Liquidation sales will be held at rue21 outlets across the US as bosses rush to clear the last remaining stock.
The clothing retailer has entered bankruptcy and bosses have announced plans to close all 540 remaining stores within six weeks, reports The US Sun.
It is the third time in less than 25 years the fashion retailer has entered bankruptcy, per Bloomberg.
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.
The company narrowly avoided going into bankruptcy in October 2022.
Chiefs filed for bankruptcy in 2017 as they rushed to clear around $700 million worth of debt.
Bosses shuttered 400 stores as well and renegotiated leases.
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.
The company also filed for bankruptcy in 2002.
At its peak, the company had more than 1,000 stores across the US.
The chain has dozens of outlets across several states, including Florida, Georgia, Illinois, North Carolina, Pennsylvania and Texas.
The teen fashion retailer is not the only clothing chain that has entered bankruptcy over the past year.
Last month, Express chiefs filed for bankruptcy, and at least 100 stores are set to close.
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