[ALERT] Mall Mainstay Rue21 to Liquidate, More Than 500 Stores Closing

In a sign of the times, a once high-flying retailer plans to close all of its stores on the heels of its second bankruptcy filing in the past few years.  Rue21, which at its peak in 2017 operated more than 1,200 stores nationwide, announced Friday that it will close all of its current 540 stores and wind down operations over the next four to six weeks.  

Established as Pennsylvania Fashions in the Pittsburgh suburb of Warrendale in 1970, the company adopted the rue21 moniker in 2003 when they exited bankruptcy the first time. Shortly thereafter it set out an ambitious plan to expand significantly over the next five years. The company opened their 500th store in 2009 and just four years later, their 1,000th store.    

The company filed for bankruptcy in May 2017, shuttered about 400 units - including twelve in Georgia - and emerged only to be met with both the pandemic and an eroding market share in the years that followed.  The rise of direct to consumer (D2C) fast-fashion brands like Shein and the return to popularity currently being enjoyed by the likes of Abercrombie & Fitch, are among the primary factors that have pushed Rue21 to liquidate.  

A major problem that led to rue21’s downfall was the “growing irrelevance of the brand to teen consumers,” Neil Saunders, managing director and retail analyst at GlobalData Retail, told CNN. 

Warrendale neighbor American Eagle Outfitters, despite starting seven years after rue21, has seemingly found a way to remain relevant and today includes some 1,100 stores, across several banners.  Although stock prices never tell the entire story, American Eagle (NYSE: AEO) is up approximately 94% over the past year while fellow young adult retailer Abercrombie & Fitch Co. (NYSE: ANF) is up a staggering 490% over the same period.   

Major landlords Simon Property Group and Brookfield Property Partners in collaboration with Authentic Brands Group (ABG) have in years past rescued bankrupt retailers such as Aéropostale and Forever 21, but there is no indication that any such move is being considered with rue21.  

To be clear, the retailer is present in Simon and Brookfield owned malls and centers locally and nationally.  

In Georgia, rue21 has stores in both Cumberland Mall near Smyrna and Perimeter Mall in Dunwoody, both Brookfield-owned malls.  The company also has stores in Mall of Georgia in Buford, Sugarloaf Mills in Lawrenceville, North Georgia Premium Outlets in Dawsonville and Calhoun Outlet Marketplace in Calhoun, all Simon-owned properties.  

The retailer also has stores in Town Center at Cobb in Kennesaw, Arbor Place Mall in Douglasville, Southlake Mall in Morrow, The Mall at Stonecrest in Lithonia, Snellville Pavilion in Snellville, Fayetteville Pavilion in Fayetteville, and Ashley Park in Newnan, among others. 

Were you ever a rue21 shopper?  What would you like to see open in the soon-to-close metro Atlanta rue21 stores?  What retailer of yesteryear do you miss the most?

Please share your thoughts below.