‘One of the last good stores,’ shoppers cry as clothing chain with 540 shops to close outlets in weeks after bankruptcy | MN9VMUR | 2024-05-06 17:08:01
'One of the last good stores,' shoppers cry as clothing chain with 540 shops to close outlets in weeks after bankruptcy | MN9VMUR | 2024-05-06 17:08:01
SHOPPERS are up in arms after a beloved chain announced it would shutter all 540 stores within weeks.
Clothing retailer Rue21 entered bankruptcy last week – with shoppers scrambling to get their hands on items before the shutters are pulled down.
Fans flocked to social media to mourn the retailer's demise.
"No, dang," one wrote.
"That was one of the last good stores."
A second quipped: "Another one bites the dust."
This is the third time the company has filed for bankruptcy in the last 25 years, Bloomberg reported.
Rue 21 is reportedly in $190 million worth of debt, according to court documents seen by Reuters.
With a few weeks left before the company shuts down for good, the stores are holding liquidation sales to get rid of remaining stock.
The chain has 540 stores across the US and 4,900 workers are set to be impacted.
Outlets are to slam shut within four to six weeks, according to court papers.
Bosses also announced plans to sell the company's intellectual property.
<!-- End of Brightcove Player --> The company narrowly avoided going into bankruptcy in October 2022.
Chiefs filed for bankruptcy in 2017 as they rushed to clear around $700 million worth of debt.
Bosses shuttered 400 stores as well and renegotiated leases.
Execs identified the rise of online shopping and changing consumer trends as reasons behind the bankruptcy.
Michele Pascoe, the interim CEO, also alluded to the impacts of competition and inflation.
The company also filed for bankruptcy in 2002.
At its peak, the company had more than 1,000 stores across the US.
The chain has dozens of outlets across several states, including Florida, Georgia, Illinois, North Carolina, Pennsylvania and Texas.
'WE'RE CLOSING'
Rue 21 is not the only retailer shutting its doors.
The cosmetic store, Ulta, has announced that it's closing its San Francisco location at the East Bay Bridge Center.
The store alerted customers about the closure by putting a small sign on its door.
"We're closing this location on Saturday, May 4," the sign said.
The nearest Ulta store from this location is roughly 30 minutes away, which upset customers.
"Nooooo I love having an Ulta so close," one customer said on an Instagram post by @evilleeye.
"We were just there on Saturday and had no idea. This sucks," another said.
"I heard other stores are closing throughout the state," a third warned Ulta fans.
The store is having a sale of up to 90% off to get rid of the rest of its inventory.
Meanwhile, music lovers are mourning the loss of Sam Ash as it is reportedly set to shutter all 44 locations after 100 years in business.
The family-owned business lost its COO Sammy Ash in September 2023 to cancer.
Customers were also left reeling when another Save A Lot closed after nine years of business.
And one reliable grocer abruptly announced a closure this week, leaving rival Aldi with an opportunity to move in.
In August, Save A Lot transitioned from grocery operator to licensed wholesaler.
The brand was purchased by Leevers Supermarket and is now employee-owned and operated.
"As we've made a strategic shift to become a licensed wholesaler, it's clear that our long-term growth momentum must be rooted in the success of our strong network of retail partners," Leon Bergmann, CEO of Save A Lot, said in a statement.
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