It takes time for companies to fully shut down, but rue21 is speeding through the process. Over the years, the company has filed for Chapter 11 bankruptcy protection on three separate occasions, but it seems this final time will be the last. Twice before, the company managed to recover, emerging stronger each time, but it’s not so lucky this time around.
Despite high hopes for another recovery, rue21 is closing down for good. Stores are holding liquidation sales across the country, but once all that extra product is offloaded, rue21 will be no more.
When does rue21 officially close?
Rue21 filed for Chapter 11 bankruptcy for the third and final time on May 1, 2024, and the business plans to close all 540 of its stores nationwide. The company listed liabilities ranging between $100 million and $500 million and is looking to sell its intellectual property alongside the shuttering of its physical locations.
Liquidation sales have been emptying rue21 store shelves for weeks now, as the company works to offload its existing product before finalizing the brand’s closure. These sales began at the beginning of May, when the company first declared bankruptcy, and are expected to continue for the next two to four weeks.
There’s no specific date on which all rue21 locations will officially be shut down, but customers will start to see locations closing over the coming weeks. The company aims to gradually close all of its more than 500 locations over the next two months, which will likely see each rue21 in the nation shut down by the end of summer. With the current projected timeline, the company will be completely gone by mid-July or early August at the latest.
The Rise and Fall of rue21
Rue21, originally known for its trendy and affordable fashion targeting young adults and teens, enjoyed periods of success, even after previous bankruptcy filings. However, the changing retail landscape, increased competition, and evolving consumer preferences have made it difficult for the company to sustain its business model.
The closure of rue21 will impact thousands of employees across its 540 locations. As the company winds down operations, employees will be facing layoffs, while customers will have to bid farewell to a beloved brand. The liquidation sales, however, offer an opportunity for customers to purchase rue21 products at significant discounts before the stores close for good.
As rue21 shuts down, the retail spaces it occupies will eventually be vacated, potentially making way for new businesses to move in. The sale of its intellectual property may also pave the way for a digital-only presence or a rebranded version of rue21 in the future, though no specific plans have been announced.
For now, shoppers can take advantage of the liquidation sales and say their final goodbyes to rue21, a once-popular destination for affordable, trendy fashion.
