Clothing retailer rue 21 has filed for Chapter 11 bankruptcy and, according to reports, all of its 541 stores will close.
The news was confirmed by Rue 21 employees in Paris who said they have already started holding sales with 30% this week.
The Pittsburg-based company has been in business for nearly 50-years and had 1,200 locations at its peak just a few years ago.
According to a court filing, interim CEO Michele Pascoe said that Rue21 was “Negatively impacted by the challenges stemming from the Covid-19 pandemic and related adverse market trends, including shift in consumer shopping patterns from traditional brick-and-mortar retailers to online retailers and changing consumer preferences.”
The company currently employs around 5,000 people in 45 states.
