Immense debt pressure and tumbling footfall in stores have forced US-based teen fashion brand Rue21 Inc. to announce closure of its more than 400 stores across the country. The fashion retailer has 1,194 stores in the US, in total.
“It’s true – we are closing some stores. It was a difficult but necessary decision. We still have hundreds of locations across the country, and our website rue21.com, open for business,” the brand posted on a social networking site this Saturday. The retailer is also preparing to file for bankruptcy as early as this month, as reported by people familiar with the matter.
Also Read – Rue21 prepares to file for Bankruptcy
The chain, which sells budget-priced clothing and accessories at its stores in malls, strip centres and outlet centres across the US, is struggling to repay a debt load of nearly US $ 1 billion. Most of that debt stems from a US $ 1.1 billion leveraged buyout by a private equity firm Apax Partners LLP in 2013.
Rue21 would be the latest to join a string of retailers seeking bankruptcy protection as shoppers shift their spending online.
