rue21 Shuts Down All 39 Georgia Stores Amid Bankruptcy

Teen clothing retailer rue21 has filed for bankruptcy and plans to close all its stores. This isn't the first time; the company previously filed for bankruptcy in 2002 and 2017.

Challenges and Attempts to Sell

Despite promoting itself as a seller of trendy clothes at reasonable prices, rue21 struggled to find a buyer willing to pay more than what the company would make by liquidating its assets.

Impact on Georgia Locations

There are currently 39 rue21 stores in Georgia, with 21 of them located in the metro Atlanta area. Going-out-of-business sales will take place over the next month to month and a half.

Sale of Intellectual Property

Apart from selling off its clothing inventory, rue21's owners are also putting the company's intellectual property up for sale as a separate asset.

Company History and Evolution

Originally founded in 1970 as Pennsylvania Fashions Inc., the company underwent a name change to rue21 after emerging from Chapter 11 bankruptcy in 2003. Rue21 went public in 2009 and became private again in 2013, the same year it celebrated opening its 1,000th store.