Medford, Oregon- Pittsburgh-based apparel retailer Rue21 has announced plans to shutter its remaining 540 stores across the United States within the next four to six weeks, marking the end of nearly five decades in business. The company, which filed for Chapter 11 bankruptcy protection on Thursday, cited ongoing financial challenges despite previous restructuring efforts.
This is the third bankruptcy filing for Rue21, which peaked at 1,200 locations several years ago. The retailer has accrued approximately $200 million in debt and currently employs 4,900 individuals. Rue21’s previous bankruptcy filings occurred in 2003 and 2017, the latter resulting in the closure of 400 stores and a significant reduction in debt.
Rue21 will begin “going out of business” sales in the coming days as it looks to liquidate inventory and assets. Additionally, the company intends to sell its brand name and intellectual property as part of the winding-down process.
Medford Alert has reached out to Rue21 regarding the bankruptcy, and timeline of the Medford store locations closing. As of the posting of this article, we have not received a response. The retailer’s closures will affect stores in 45 states, where it has been a fixture in malls and shopping centers.
Rue21 currently operates ten stores in Oregon, including a location at the Rogue Valley Mall. The closure of these locations will mark the end of an era for the popular teen-focused retailer, which has faced ongoing challenges in adapting to shifting consumer preferences and market dynamics.
The company’s workforce and creditors will be impacted by the closure, highlighting broader challenges facing traditional brick-and-mortar retailers in an increasingly competitive landscape. As Rue21 prepares to wind down operations, attention will turn to the fate of its employees and the broader implications for the retail industry.
This is a developing story, Medford Alert will continue to update this article as additional information is available.
