Retail

Rue21 to File For Bankruptcy This Month

The rumor mill is churning, and it’s saying that Rue21 is preparing itself to file for bankruptcy later this month.

While the company is working with lenders on its forbearance agreement through the remainder of April, some are saying that a bankruptcy filing is imminent.

According to the clothing retailer’s spokesperson, “Rue21 has been working to improve its operations and enhance its liquidity position and has been actively engaged with its lenders and bondholders to explore the best path forward.”

Over the past few months, PYMNTS has reported on several retailers closing stores, including Macy’s, JCPenney and, just earlier this week, discount shoe store Payless.

While this retailer has seen its fair share of success over the years, it’s likely succumbing to what most other mall stores are facing, which is a lack of foot traffic due to the eCommerce revolution. As more consumers continue to select the online world for their shopping needs, this is likely a pattern that will continue to occur.

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