Interim CEO Michele Pascoe stated in a court filing that the retailer was “badly hit” by the shift to online shopping, a trend that accelerated during the COVID-19 pandemic.
Retail expert Neil Saunders criticized the brand’s positioning, citing “the growing irrelevance of the brand to teen consumers.”
“Rue21 does not have a very compelling proposition and is losing customers to other retailers and to cheaper and more interesting fashion platforms like Shein,” said Saunders, managing director of GlobalData, in an interview with CNN.
“There is still a big question mark over whether the retail market needs Rue21 to exist.”
Rue21 joins the list of retailers filing for bankruptcy and closing stores.
In April, Express—a mall staple—also filed for bankruptcy and announced it would shut down 95 of its Express locations along with all UpWest stores.
In the same month, the discount chain 99 Cents Only Stores announced it would be shutting down all 371 locations as it went out of business.
Loyal customers of 99 Cents Only have been rushing to California stores, clearing shelves to snag last-minute deals.
At the same time, in April’s third bankruptcy, the national coffee and high-end grocery chain Foxtrot also announced it would “shut all its stores with immediate effect” – a move that left both staff and customers shocked.
Founded in 2014 in Chicago, Foxtrot had 33 stores across Chicago, Austin, Dallas, and Washington DC.
