Rue21, a teen fashion retailer that was founded in 1970 as Pennsylvania Fashions Inc., has filed for Chapter 11 bankruptcy and is closing all of its more than 500 stores across the United States. This is not the first time rue21 has faced financial trouble, having previously filed for bankruptcy in 2003 and 2017. Despite efforts to sell the business, rue21 was unable to find a buyer willing to pay more than what they would earn through liquidation.
Red Lobster, on the other hand, has reportedly considered filing for bankruptcy but has not yet made a final decision. If Red Lobster were to file for bankruptcy, it would raise concerns about the future of their popular cheddar bay biscuits. Other retailers such as Express, Joann, and The Body Shop have also filed for bankruptcy and announced store closures recently.
Rue21 will be conducting large “going out of business” sales over the next two months and selling its intellectual property. Financial consultants will be managing the liquidation process as rue21 prepares to shut down all of its stores. As these companies face financial difficulties, it remains to be seen how they will navigate their way out of these challenges and what impact they will have on their respective industries.
