Storefront of Rue21
(Justin Sullivan, Getty Images)

Rue21 Set To Shut Down After Filing For Bankruptcy a Third Time

Since its inception, American fast fashion brand Rue21 has filed for bankruptcy three times, with the latest declaration filed this month.

Recommended Videos

While the specialty retailer was able to rebound from the two previous setbacks, the latest announcement is likely to be the final nail in the coffin for the company’s future. According to a Reuters report, Rue21 plans to shut down all 543 US stores in the next two months. The teen fashion retailer will hold “going out of business” sales on a massive scale, also disposing of its intellectual property rights. The court documents have been filed for the same in the US Bankruptcy Court in Delaware.

The brand first filed for bankruptcy back in 2002, which was followed by another Chapter 11 bankruptcy in 2017. During the 2017 filing, the retailer closed 400 stores and was able to cut around $700 million in debt. As per Reuters, the company is approximately $194.4 million in debt. According to the same report, the brand attempted to sell its business but didn’t receive a proposal that exceeded the sum the company would earn by liquidating its inventory.

Rue21 is the third major retailer to shut down operations this year, joining 99 Cents Only stores and The Body Shop in closing all US-based stores. Crafts retailer Joann and mall-based clothing retailer Express have also filed bankruptcy in the last few months, but the two companies are still trying to survive. All these retailers have faced an uphill battle against online shopping websites, and the pandemic accelerated the process, ultimately resulting in mass closings.

Rue21 is headquartered in the Pittsburgh suburb of Warrendale, Pennsylvania, and was conceived in 1970. Their target market is the young diaspora, especially people who desire, wish, or feel to be 21 years old.


The Mary Sue is supported by our audience. When you purchase through links on our site, we may earn a small affiliate commission. Learn more about our Affiliate Policy
related content
Read Article Happy 11th Birthday, BTS!
The seven members of BTS in the music video for their single "Butter"
The seven members of BTS in the music video for their single "Butter"
The seven members of BTS in the music video for their single "Butter"
Read Article Adobe Lands in the Soup for Implying Users’ Content Might Be Used To Train AI, Backtracks
Adobe Photoshop software developer offices.
Adobe Photoshop software developer offices.
Adobe Photoshop software developer offices.
Read Article ‘Tommy’ Revival’s ‘Listening to You’ Is One of the Most Moving Bits of Theatre I’ve Seen
ali louis bourgazi as tommy on stage with his hand in the air
ali louis bourgazi as tommy on stage with his hand in the air
ali louis bourgazi as tommy on stage with his hand in the air
Read Article Red Velvet’s Latest Comeback, ‘Cosmic,’ Is Giving Sailor Moon Vibes
Red Velvet 2024 Comeback and Cosmic Album Release
Red Velvet 2024 Comeback and Cosmic Album Release
Red Velvet 2024 Comeback and Cosmic Album Release
Read Article Dearest Gentle Reader, What Comes Next?
The Bridgerton family looking curiously at the camera
The Bridgerton family looking curiously at the camera
The Bridgerton family looking curiously at the camera
Related Content
Read Article Happy 11th Birthday, BTS!
The seven members of BTS in the music video for their single "Butter"
Read Article Adobe Lands in the Soup for Implying Users’ Content Might Be Used To Train AI, Backtracks
Adobe Photoshop software developer offices.
Read Article ‘Tommy’ Revival’s ‘Listening to You’ Is One of the Most Moving Bits of Theatre I’ve Seen
ali louis bourgazi as tommy on stage with his hand in the air
Read Article Red Velvet’s Latest Comeback, ‘Cosmic,’ Is Giving Sailor Moon Vibes
Red Velvet 2024 Comeback and Cosmic Album Release
Read Article Dearest Gentle Reader, What Comes Next?
The Bridgerton family looking curiously at the camera
Author
Evan Tiwari
Evan is a staff writer at The Mary Sue, contributing to multiple sections, including but not limited to movies, TV shows, gaming, and music. He brings in more than five years of experience in the content and media industry, both as a manager and a writer. Outside his working hours, you can either catch him at a soccer game or dish out hot takes on his Twitter account.