Teen clothing retailer rue21, which is based in Warrendale, filed for bankruptcy last week and appears to be closing all of its stores.
Employees at the Warrendale headquarters were seen Friday carrying boxes to their vehicles after being informed they were losing their jobs during a virtual meeting Thursday, TribLive news partner WTAE reported.
Reuters reported the retailer filed for Chapter 11 bankruptcy for a third time Thursday and planned to shut down its 540 stores.
According to court filings, five are in Southwestern Pennsylvania:
• Westmoreland Mall
• Uniontown Mall
• Monroeville Mall
• Mall at Robinson
• Sennott Square in Oakland
Under an interim order, the company is permitted to hold store closing sales and cease operations pending a final hearing, which is scheduled for May 24. Rue21 is working with Gordon Brothers Retail Partners to conduct the sales, according to a court filing.
CNN reported that the retailer had been in business for nearly 50 years and had 1,200 locations at its peak a few years ago. Its chief executive officer reported in court filings that the company was affected by the coronavirus pandemic and consumer shopping moving online, according to the news outlet.
It has about $200 million in debt and 4,900 employees.
The company previously filed for bankruptcy in 2003 and 2017, Reuters reported. During the second stint, it closed about 400 stores, slashing around $700 million in debt.
Rue21 focuses on affordable fashion for teens and young adults. Its website appeared to be down Saturday.
