Rue21, the once-popular teen clothing store, has filed for Chapter 11 bankruptcy protection, marking the third time the company has filed for bankruptcy. The retailer has also announced its intention to permanently close all of its stores as part of restructuring efforts.

The company, known for its presence in shopping malls across the United States, disclosed its filing for bankruptcy protection, showing how tough it's been to keep going with all the changes in how people shop. Papers filed in bankruptcy court lay out their idea to have big sales and sell off everything.

Rue21 currently operates approximately 540 stores nationwide. Despite efforts to secure a buyer for the business, the company was unable to find a good enough deal that would make more money than selling off its inventory, as reported by Reuters.

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The company's accumulated debt is estimated to be around $194.4 million. This is not the first time Rue21 has encountered financial troubles, having previously filed for bankruptcy protection in 2003 and 2017. During its second bankruptcy filing, the company closed 400 stores, successfully reducing its debt by approximately $700 million.

The retail industry as a whole has experienced significant financial troubles as is evident in the increase in corporate bankruptcies in recent years. According to Debtwire's latest Restructuring Insights report, there was a 58% increase in bankruptcy filings in 2023 compared to the previous year.

Rue21 operates ten stores in New York. Those store locations are in Albany, Bay Shore, Buffalo, Deer Park, Middletown, Rochester, Rome, Syracuse, and Waterloo.

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