Teen clothing retailer Rue 21 restructuring under Chapter 11

CRANBERRY, Pa. (AP) – Pennsylvania-based teen clothing retailer rue21 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, vendors and honor gift cards.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s