Teen clothing retailer rue21 filing for Chapter 11
The rue21 clothing store at Broadway Mall in Hicksville, seen in an undated photo, is closing as the youth-oriented retailer shuts down nearly 400 stores nationwide. Credit: Google Maps
Pennsylvania-based teen clothing retailer rue21, which has four Long Island stores, is restructuring and filing for Chapter 11 bankruptcy protection about a month after announcing it would close roughly 400 stores to focus on online sales.
The company announced last month that it is shuttering the stores, leaving it with more than 700 stores in 48 states.
The company, based in Cranberry, north of Pittsburgh, announced Tuesday that its bankruptcy filing accompanies agreements with lenders to restructure some debt and obtain more capital.
The company says it could wind up closing more stores before it emerges from bankruptcy in the fall.
A federal bankruptcy judge must approve the Chapter 11 plan, which includes up to $175 million in financing from various lenders. That money will help the company pay employees and vendors and honor gift cards.
Rue21’s store in Hicksville will close, the company’s website said in April. The other stores on Long Island are in Bay Shore, Deer Park and Massapequa, according to the website.
With Aisha Al-Muslim
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Sarra Sounds Off, Season 3, Ep 2: Garden City vs. Massapequa, fantasy update and plays of the week Gregg Sarra sounds off on the hype of the Garden City vs. Massapequa matchup, plus Tess Ferguson at Floyd girls tennis with the Van Cott twins, the plays of the week and a high school fantasy football update on the latest epsiode of Sarra Sounds Off.
