rue21, Inc. has filed a voluntary petition for reorganization under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Western District of Pennsylvania, and has entered into agreements with certain of its lenders to reduce the Company’s debt and provide additional capital in support of its restructuring.
rue21 expects to continue normal business operations in the ordinary course throughout this process.
The restructuring is an important step forward in rue21’s ongoing business transformation into a more focused and highly performing retailer. Last month, the Company began the process of closing approximately 400 underperforming stores in its 1,179 store fleet in order to streamline operations, better align the size of its footprint with market realities, and focus on its hundreds of highly performing locations. rue21 may evaluate additional store closings as it continues to manage its real estate lease portfolio.
Subject to court approval, the Company has also reached agreements to obtain up to $175 million in debtor-in-possession financing, including $50 million in new capital, which is intended to provide the Company with the liquidity necessary to support its ongoing business operations during the financial restructuring process.
This web page provides information about our restructuring, including a link to our claims agent site and frequently asked questions. A toll-free restructuring information line is also available by calling (888) 647-1738 or, if calling from outside the U.S. or Canada, +1 (310) 751-2625.
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