Yep, you read that right. Rue 21 has filed for their third and final bankruptcy. This means all 540 of the Rue 21 stores will be closed. This follows other national retailers, such as The Body Shop and 99 Cents Only, closing all of their locations.

How Does This Hit Billings?

For us here in Billings, this means the line Rue 21 store inside Rimrock Mall will be shutting down over the coming weeks, and this means BIG savings for you on whatever is left.

Specifically, Rue 21 said their stores will all be closing down in the next 4 to 6 weeks. Rue 21 attempted to sell its business, but no buyer wanted to pay more than the value of liquidating the Rue 21 assets and shutting down the stores, according to bankruptcy court documents.

At the peak of Rue 21, the company had around 1,000 stores in malls across the United States. 400 stores were closed in 2017 due to bankruptcy, saving Rue 21 for a few years.

Then, after struggling to maintain during the pandemic, Rue 21 tried raising more capital in 2022, receiving a $25 Million investment from its existing lending partners. Now, in 2024, those lenders own 80% of Rue 21's stock, as lined out in court documents.

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Rue 21 also announced they plan to sell the brand itself, along with other intellectual property, separate from store closing sales.

What are your thoughts?

Do you know someone working at Rue 21 in the mall, now essentially without a job? Have you ever shopped at Rue 21? Let us know on App Chat, or the Facebook Comments Section for this article.

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Source: Reuters

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