Businesses across the globe are declaring bankruptcy and shuttering their doors, and rue21 is the latest on the chopping block.
The casual clothing store has been in operation for decades now, but it seems its finally hit the end of its lifetime. Following several bankruptcy filings and dwindling sales, it seems rue21 may officially be on its way out. Stores will likely remain open for a few more months, as the company works to offload its remaining product, but by the end of 2024 the store will be no more.
Why is rue21 closing?
Declaring bankruptcy doesn’t always spell the end of a business, but the third time may well seal the deal for rue21. The attire retailer first opened its doors in 1970, and for nearly 50 years it thrived as a top pick for young people looking for cute, casual fits.
The company behind rue21, then known as Pennsylvania Fashions Inc, first filed for Chapter 11 bankruptcy protection in 2002. A year later it exited Chapter 11, and rue21 arose as a behemoth in the world of casual fashion, branching out and opening hundreds of fresh stores across the nation. That continued until, in 2017, it filed for bankruptcy again.
Its second Chapter 11 stint lasted through most of 2017, but once again the company came out the other side damaged, but standing. It wasn’t among the victims of the 2017 retail apocalypse, but it seems 2024 may be the end of the brand for good.
rue21’s third, and seemingly final, bankruptcy filing came in May of 2024, when the company was dragged down by liabilities listed between $100 million and $500 million. That will see all of rue21’s remaining 540 stores close, with liquidation sales preceding an official shuttering of the business.
It seems time, the slow decline of in-store shopping, and the crushing weight of the economy are ultimately to blame for the loss of rue21. Its among a number of victims of our abysmal economy, but shoppers still have a few weeks to get in their last rue21 purchases before the store closes its doors for good.
