Trendy Clothing Retailer Closing 500 Stores, Including in NJ

Another clothing retail franchise has declared bankruptcy, closing hundreds of shops nationwide, including one in Vineland.

Trendy Teen Fashion Store Rue21 is Closing

Rue21, a clothing retailer focused on teen fashion, will close all its stores over the next two months, the company announced recently, including its location in the Cumberland Mall.

In a May 2nd bankruptcy court filing, rue21 cited continued increase in consumer online shopping, in-person retail locations underperforming, and inflation as reasons for the company's recent losses.

Are rue21 and Forever 21 the Same Store?

While the stores' names are similar and often found in malls, there is no affiliation between Forever 21 and Rue 21. They are owned by separate companies.

rue21 has filed for bankruptcy twice before, in 2003, and in 2017 when they closed 400 stores, including its Hamilton Mall location, to cut about $700 million in debt.

rue21 was founded in 1970 as Pennsylvania Fashions Inc. In 2003, after filing for the first time for bankruptcy, it rebranded to rue21.

When Does rue21 Going Out of Business Sale Begin?

The company has said they expect to complete the "going out of business sales" at all locations within the next 4-6 weeks. As of May 9, the rue21 website still says "being updated" and encourages visitors to check back soon.

Rue21's announced closing comes less than two weeks after fashion retailer Express filed for Chapter 11 bankruptcy and announced plans to close more than 100 locations.