The retail wheel of misfortune has been particularly unkind to teen-targeted shops that occupy many of the nation’s malls and shopping centers. WetSeal, Aeropostale, Pacific Sun, and Quicksilver have all recently filed for bankruptcy, and a new report says Rue21 may be the next to fall.
Bloomberg, citing sources familiar to the matter, reports that Rue21 could file for bankruptcy as soon as this month.
The sources say that the retailer, which specializes in apparel and accessories for young men and women, is currently in the process of negotiating with lenders.
“Rue21 has been working to improve its operations and enhance its liquidity position and has been actively engaged with its lenders and bondholders to explore the best path forward,” the retailer said in a statement to Bloomberg.
The Pennsylvania-based chain, which operates about 1,100 stores in malls, outlets, and strip centers across the U.S, was purchased by Apax Partners in 2013.
If Rue21 indeed files for bankruptcy this month, it would join a long list of retailers doing so in recent months, including Gordmans, hhgregg, RadioShack, Gander Mountain, BCBG Max Azria, MC Sports, Eastern Outfitters, Wet Seal, and The Limited.
With this week’s Chapter 11 filing by Payless, the number of retailers going bankrupt in 2017 has already surpassed the volume of similar bankruptcy filings from all of 2016.
by Ashlee Kieler via Consumerist