Rue 21 Closing All Stores In Chapter 11 Bankruptcy

It’s been a difficult past few years for retailers who base most of their operations out of indoor shopping malls, including the Mount Berry Mall.

The most recent example of this ongoing problem is at Rue 21, a store that sells mostly teen and tween clothing. Rue 21 sells affordable apparel and accessories, from party dresses to graphic tees, but has struggled to regain the enthusiasm it enjoyed during the early 2000s.

Until recently, it held a place at the Mount Berry Mall but on May 2, Rue 21, a majority of which is owned by Blue Torch Capital, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. Amid the filing, Rue 21 will also close all of its stores.

It listed $100 million-$500 million in assets and liabilities in its petition. Blue Torch Capital owns approximately 78% of the troubled retailer.

It currently operates about 540 of them across the United States. Its website is also no longer functional, with a message on the home page that reads, “Our site is being updated. Check back soon.”

Its stores are slotted to close in the next four to six weeks.

This marks the third time Rue 21 has filed for bankruptcy.

It filed in 2002 for Chapter 11 under its old name, Pennsylvania Fashions. It reorganized and attempted to expand, exiting Chapter 11 in 2003 and renaming itself Rue 21.

Then again in 2017, Rue 21 announced it would close 400 stores and file once again for Chapter 11. It re-emerged in September 2017 and announced in 2020 that it would pivot more of its focus to plus sized and size inclusive offerings.