![DVIDS – Images – Balikatan 24: Community Health Engagement at Davila Elementary School [Image 4 of 8]](https://d1ldvf68ux039x.cloudfront.net/thumbs/photos/2404/8353684/1000w_q95.jpg)
In recent news, Rue21, a popular teen apparel store found in malls, has announced that it will be closing all 540 of its stores in the coming weeks. This decision comes after the Pittsburgh-based company filed for bankruptcy for the third time in its nearly 50-year history. Despite a previous bankruptcy in 2017, financial struggles in recent years have led to this outcome.
At its peak, Rue21 had 1,200 locations, but due to various factors such as shifts in consumer shopping patterns, competition from online retailers and changing consumer preferences, the company has been negatively impacted. Interim CEO Michele Pascoe cited these challenges as contributing factors to Rue21’s bankruptcy.
One of the core issues that led to Rue21’s closure was its inability to stay relevant to teen consumers. The company faced stiff competition from other retailers and fashion platforms like Shein which provided cheaper and more interesting options for consumers. As a result, Rue21 struggled to attract and retain customers.
As Rue21 prepares to close its doors, its stores located in 45 US states will be shuttered within the next 4 to 6 weeks. Going out of business sales will begin soon as the company also plans to sell its brand name and other intellectual property. Rue21 joins a growing list of retailers that have faced financial challenges in recent months, including Express, 99 Cents Only Stores and Joann.
