Popular Clothing Store Files for Bankruptcy
In mid-April, Rue21 announced that it will be closing approximately 700 of its nearly 1,200 stores in 48 states.
The closure process had already began for about 400 locations.
Closures are costing more than 15,000 employees their jobs.
Following the closures, the company filed for chapter 11 bankruptcy on Monday after facing $1 billion in debt.
The CEO released the following statement:
"Even in a challenging environment, we are fortunate that Rue21 has highly relevant brands, an enthusiastic and loyal customer base, and hundreds of highly performing stores. The agreement with our lenders represents their confidence in Rue21’s future success even at a time of significant retail industry change."
According to USA Today, bankruptcy may save the company from liquidation.
Many retail locations have been negatively impacted by the growth of e-commerce. Therefore, Rue21 will be focusing more on online sales.
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