- Sara Ehlers |
Rue21 has announced that it's officially moving towards a turnaround. After filing for bankruptcy protection in May, the retailer has just confirmed plans for reorganization.
The U.S. Bankruptcy Court for the Western District of Pennsylvania confirmed Rue21's Plan of Reorganization. The plan involves moving the business forward to help turnaround its financial state. "Today's confirmation represents an important step forward in rue21's ongoing business transformation to a sustainable business model for a highly performing retailer," said Melanie Cox, chief executive officer of Rue21. "We are very pleased to have moved through the restructuring process in a relatively short period. With the support of our lenders, our landlords, all of our business partners and the hard work of our team, the Company has performed consistently well ahead of its liquidity plan, and exceeded its second quarter target for Adjusted EBITDA by over 200 [percent]."
The brand plans to improve its e-commerce stores, improve its customer base, and help keep strong relationships with its vendors. The plan will be effective September 15, once all closing conditions have been met. Ultimately, this could be the beginning of Rue21's pathway out of bankruptcy.