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Troubled retailer Rue21 – erstwhile a promenade staple – revenge for Chapter 11 bankruptcy protection, and plans to shutter each its stores and waste each its intelligence property.
This marks nan 3rd clip nan institution has revenge for bankruptcy arsenic it struggles to proceed operating.
According to tribunal documents revenge successful nan U.S. Bankruptcy Court successful nan District of Delaware, nan institution plans to adjacent its stores and instrumentality "going retired of business" sales.
RADIO GIANT AUDACY FILES FOR BANKRUPTCY AS ADVERTISING PLUMMETS
The institution has astir 540 stores successful nan U.S., according to its website.
Reuters reported nan institution tried to sell its business, but it didn't unafraid a purchaser that was consenting to salary much than what nan institution would gain by liquidating its inventory.
A shopper walks past a closed Rue 21 shop successful nan re-opened Anderson Mall successful Anderson, South Carolina, connected Friday, April 24, 2020. ( Dustin Chambers/Bloomberg via Getty Images / Getty Images)
The institution has racked up astir $194.4 cardinal successful debt.
The teen clothing retailer first revenge for bankruptcy protection successful 2003, followed by a 2nd clip successful 2017, Reuters reported. During its 2nd filing, nan institution closed 400 stores, allowing it to trim $700 cardinal of its debt, according to nan outlet.
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Rue21 isn't alone. In fact, nan U.S. saw a important emergence successful corporate bankruptcies past year.
Debtwire's latest Restructuring Insights study recovered bankruptcy filings jumped 58% successful 2023, climbing from 179 successful 2022 to 282.
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"The 58% spike successful bankruptcies successful 2023 signaled a awesome displacement successful lenders' attitudes, unwilling to prolong support for struggling companies," said Catherine Corey, Debtwire's world caput of restructuring data.
"A convergence of challenges, including nan post-pandemic withdrawal of authorities support, inflation, rising liking rates, proviso concatenation disruptions, world unrest, and stricter lending requirements, created a cleanable storm."
FOX Business' Breck Dumas contributed to this report.
