Clothing retailer rue21 files for bankruptcy, all stores to close

(Gray News) - Expect another vacancy at your local mall soon.

Teen apparel retailer rue21 has filed for Chapter 11 bankruptcy and is closing all of its 541 stores, according to reports from Bloomberg and Reuters.

It’s the third bankruptcy for the debt-ridden Pennsylvania-based company, who filed for bankruptcy Thursday in Delaware, according to Reuters.

Rue21 is roughly $200 million dollars in debt and couldn’t rebound from when it declared bankruptcy in 2017.

According to a court filing, CEO Michele Pascoe said the company was severely impacted by the COVID-19 pandemic and other market trends.

A search of their website indicates it is undergoing maintenance.

The company, which reportedly employs 5,000 people in 45 states, plans to hold going-out-of-business sales in the coming weeks, Bloomberg reported.

A person who said they work for rue21 indicated on social media that no warning was given about the impending closures. Others expressed sadness about the closures.