Rue21 Will Close 17 Stores in South Carolina Following Bankruptcy
Greenville, SC – April 15, 2024
Fashion retailer rue21 has filed for Chapter 11 bankruptcy and will be closing all of its stores, including 17 locations in South Carolina. This news comes as a blow to the state’s retail industry and will result in the loss of jobs and a decrease in shopping options for residents.
Rue21 to Close All Stores
Rue21, based in Warrendale, Pennsylvania, has filed for bankruptcy for the third time. The company plans to close all 543 of its stores nationwide, with major out-of-business sales taking place until all stores are shut down within the next two months.
Court documents filed in U.S. Bankruptcy Court in Delaware reveal that rue21 will also sell its intellectual property. The company, which currently employs approximately 4,900 people, is burdened with a debt of $194.4 million.
South Carolina Locations to Close
As part of its store closures, rue21 will be shutting down all 17 of its remaining locations in South Carolina. The affected areas include:
- Anderson (1)
- Beaufort (1)
- Columbia (1)
- Florence (1)
- Gaffney (1)
- Greenville (1)
- Greenwood (1)
- Myrtle Beach (3)
- North Charleston (2)
- Orangeburg (1)
- Rock Hill (1)
- Spartanburg (1)
- Summerville (1)
- Sumter (1)
This closure will result in a loss of jobs for employees at these locations, as well as a decrease in shopping options for residents in these communities.
Rue21’s Bankruptcy History
Rue21 has a tumultuous history with bankruptcy. The company previously filed for bankruptcy in 2003 and 2017, resulting in the closure of 400 stores. These closures helped alleviate around $700 million in debt.
Originally known as Pennsylvania Fashions Inc., the company was formed in 1970 and operated under various names. After emerging from its first bankruptcy in 2003, it rebranded itself as rue21. Despite efforts to find a buyer, the company failed to attract any offers that surpassed the potential earnings from liquidating its inventory and closing stores.
To assist with the closing sales, rue21 has enlisted the help of financial consultant Gordon Brothers.
The Impact on South Carolina
The closure of rue21 stores in South Carolina will have several implications for the state. Firstly, it will result in a loss of jobs for employees at these locations. This is especially concerning in the wake of the economic challenges brought on by the COVID-19 pandemic.
Additionally, the closure of these stores means that residents in these communities will have limited options for affordable fashion. rue21 catered to a wide range of customers with its trendy and affordable clothing options.
Local residents will now have to turn to other retailers or online shopping platforms to fulfill their fashion needs. This may lead to a decline in foot traffic for nearby shopping centers that relied on rue21’s presence to attract customers.
A Challenging Time for Retail
Rue21’s bankruptcy and closure of stores in South Carolina reflect the challenging environment for brick-and-mortar retailers. The rise of online shopping and the ongoing impact of the pandemic have accelerated the demise of many traditional retailers.
Experts warn that South Carolina’s retail industry must adapt to these changes and find innovative ways to stay relevant. Emphasizing personalized customer experiences and investing in online platforms may be crucial for retailers to survive in this evolving landscape.
As locals bid farewell to rue21 and face the loss of jobs and a decrease in shopping options, it remains to be seen how South Carolina’s retail industry will evolve in the coming years.
