NEWS

rue21 files for Chapter 11 in US Bankruptcy Court in Delaware, closing all 500+ stores

Anthony DiMattia Emily DeLetter
Delaware News Journal

rue21 has filed for Chapter 11 bankruptcy and is closing all of its over 500 stores.

Reuters reported that the teen fashion retailer plans to close all of its 543 U.S. stores within the next two months while conducting large "going out of business" sales, according to court documents filed in U.S. Bankruptcy Court in Delaware. rue21 also plans to sell its intellectual property.

rue21 has not issued a press release or commented publicly on the bankruptcy as of Friday morning. The company's website appears to be down.

rue21 locations in Delaware, Maryland, Pennsylvania and South Jersey

Here are the rue21 locations in the Delaware area that are expected to close:

Delaware

  • Dover Mall, 1365 N. Dupont Highway, Space 5016A, Dover
  • Tanger Outlet, 36496 Seaside Outlet Drive, Rehoboth Beach
  • Concord Mall, 4737 Concord Pike, Brandywine Hundred

Eastern Shore, Maryland

  • Tanger Outlet, 12741 Ocean Gateway, Space 930, Ocean City

Philadelphia

  • Philadelphia Mills, 1259 Franklin Mills Circle

South Jersey

  • Moorestown Mall, 400 Route 38, Space 1030, Moorestown
  • Cumberland Mall, 849 S. Delsea Drive, Suite F-20, Vineland

Chapter 11:Express, longtime mall clothes retailer, to close 95 stores after filing for bankruptcy

rue21 has filed for bankruptcy twice before

This is not the first time the retailer based in Warrendale, Pennsylvania, has filed for bankruptcy, previously filing in 2003 and 2017, when it closed 400 stores and cut about $700 million in debt. Reuters reported that rue21 currently has approximately 4,900 employees and $194.4 million in debt.

The company was founded in 1970 as Pennsylvania Fashions Inc. and operated under various brand names until it filed for bankruptcy in 2002. It exited bankruptcy in 2003 and was renamed to rue21.

rue21 tried to sell its business but could not find a buyer willing to pay more than it would earn by liquidating its inventory and shutting down stores, Reuters reported. It has hired the financial consultant Gordon Brothers to help with store closing sales.

rue21 closures followed by Express bankruptcy

Express, the longtime mall clothes retailer, filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Delaware and will close 95 stores, the Columbus, Ohio-based brand announced in April.

Closing sales at affected stores would begin Tuesday, April 23, the company said in a press release.

Express operates about 530 Express, Express Edit and Express Factory Outlet stores in the U.S. and Puerto Rico, according to the store locator, as well as seven stores in Mexico and Central America.

Here is a list of store locations Express is expected to close in Maryland, New Jersey and Pennsylvania:

  • Paramus, NJ
  • Woodbridge, NJ
  • Freehold, NJ
  • Deptford, NJ
  • Mays Landing, NJ
  • Livingston, NJ
  • Moorestown, NJ
  • Market Street, Philadelphia
  • Walnut Street, Philadelphia
  • Wheaton, MD
  • Baltimore, MD
  • Salisbury, MD