Facebook/Rue21
Teen clothing retailer Rue 21 has filed for Chapter 11 bankruptcy protection.The company said Tuesday that it has entered into agreements with lenders to reduce the company's debt and provide additional capital in support of a restructuring.
Rue21, which has 1,179 stores across the US, will continue operating its stores during the bankrutpcy proceedings.
The retailer started closing 400 stores last month, and said it is considering additional closures beyond those 400.
The company listed its assets and liabilities in the range of $1 billion and $10 billion.
"These actions are being undertaken with the goal of strengthening the Company's balance sheet, achieving a more efficient cost structure, and concentrating resources on a tighter retail footprint in order to pave the best path forward for Rue21," CEO Melanie Cox wrote in a statement.
With the filing, Rue21 joins a long list of other retailers that have filed for bankrtupcy this year, including Payless ShoeSource, hhgregg, The Limited, RadioShack, BCBG, Wet Seal, Gormans, Eastern Outfitters, and Gander Mountain.
More retailers have filed for bankruptcy this year than throughout all of last year.
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