Clothing company Rue21 has filed for Chapter 11 bankruptcy for the third time in 21 years and reportedly plans to close its 540 stores, including 10 locations in New York State.
The struggling teen-centric retailer, which is nearly $195 million in debt, filed for bankruptcy in Delaware Thursday, according to Reuters. The company reportedly employs nearly 5,000 people and operates in 45 states.
Rue21 has had no luck selling its operations, which once included nearly twice the shops the company currently runs.
The Pennsylvania-based retailer shaved off $700 million in debt when it filed for bankruptcy in 2017 and closed 400 stores, Reuters reports. Rue21 also filed for bankruptcy in 2003.
Shortly after news of the bankruptcy filing Thursday, the company’s homepage said it was “being updated.” No statements had been made on social media, and their official Instagram account appeared to have been removed. A representative for the chain did not return a request for comment.
“Gotta appreciate big corporations not giving a s–t about their employees and not bothering to warn anybody,” one critic wrote on Rue21’s Facebook page Thursday afternoon.
It’s not known if employees were notified in advance of impending store closings.
Bloomberg reports Rue21 plans to hold going-out-of-business sales for the next four to six weeks. Its listed liabilities and assets are both between $100 million and $500 million.
The retailer’s list of locations shows no stores in New York City, though it does list two Long Island locations — in Deer Park and Bay Shore.
