The casual clothing store rue21, which has been a staple for decades, is finally closing its doors. Following several bankruptcy filings and dwindling sales, it appears rue21 is on its way out. Stores will likely remain open for a few more months as the company works to offload its remaining products, but by the end of 2024, rue21 will be no more.
Declaring bankruptcy doesn’t always spell the end of a business, but the third time might be the final nail in the coffin for rue21. The retailer, which first opened in 1970, thrived for nearly 50 years as a popular choice for young people seeking casual fashion.
The company, originally known as Pennsylvania Fashions Inc, first filed for Chapter 11 bankruptcy protection in 2002. It emerged from Chapter 11 a year later and experienced significant growth, opening hundreds of new stores across the nation. However, in 2017, the company filed for bankruptcy again. This second Chapter 11 stint lasted through most of 2017, but once again, rue21 managed to survive, albeit damaged.
Despite surviving the 2017 retail apocalypse, 2024 seems to be the end for rue21. The company filed for its third, and seemingly final, bankruptcy in May 2024, citing liabilities between $100 million and $500 million. This will result in the closure of all remaining 540 stores, with liquidation sales happening before the official closure.
The reasons for rue21’s closure are multifaceted. The decline of in-store shopping, compounded by the economic challenges and shifts in consumer behavior, have significantly impacted the brand. Rue21 joins a growing list of retailers that have struggled in the current economic climate. However, shoppers still have a few weeks to make their final purchases before rue21 closes its doors for good.
