FASHION retailer Rue21 is closing all 39 stores in one state after filing for bankruptcy.
The national chain will close all of its stores, including a cluster in Georgia.
Rue21 is based in Pennsylvania and has 540 locations to close, and will soon exit the Peach State, according to Correction.
Photos shared on Facebook Show the store is advertising clearance sales with 50-70% off in at least some locations.
The 39 locations are spread across the state.
Atlanta and Macon will lose two Rue21 stores each.
It’s unclear how many employees in Georgia will be affected or when exactly the last stores will close.
All stores are expected to close over the next three weeks, according to CNN.
SOLD FOR PARTS
Rue21 announced earlier this month that it would close all of its stores.
The company has filed for Chapter 11 bankruptcy, which typically does not mean the company is closing.
Instead, the process is intended to help companies sell assets and restructure to eliminate debt.
Rue21 was trying to sell its stores but was unable to find a buyer who would pay more than the value of the inventory itself, according to Reuters.
The closure of all 540 stores will impact approximately 4,900 employees.
The company has already sold hundreds of locations in a 2017 bankruptcy filing.
It also filed for bankruptcy in 2003.
Now, there are just a few weeks left for shoppers to get deals on Rue21.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps businesses eliminate debts they cannot pay.
The process allows businesses to start from scratch and gain access to new credit.
Overseen by federal courts, bankruptcies allow a company to more easily sell its assets to pay creditors, according to Investopedia.
Chapter 11, a common process for businesses, is used to restructure a business with the goal of staying open — even if it means selling most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows collaboration between U.S. and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” according to the United States Courts.
MORE BANKRUPTCY
Rue21 isn’t the only fashion brand facing a massive sale.
In April, Express filed Chapter 11.
This clothing chain will continue to operate, but is closing more than 100 stores.
After weeks of speculation, seafood restaurant chain Red Lobster has filed for bankruptcy.
The company has assured customers that it is not going away, even though many locations are on the verge of closing.
Jo-Ann, formerly Joann Fabrics, is trying to stay afloat by filing for bankruptcy.
See how shoppers are reacting to the end of Rue21.
This story originally appeared on The-sun.com read the full story
