Teen specialty apparel retailer Rue21 has announced that the U.S. Bankruptcy Court for the Western District of Pennsylvania has confirmed the company’s Plan of Reorganization, which clears the way for Rue21 to emerge from the bankruptcy process after less than four months.
“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.”
Cox added, “Rue21 can now move forward from a position of renewed strength, with a highly relevant brand, an enthusiastic and loyal customer base, hundreds of highly performing stores, and a rapidly growing e-commerce business supported by strong vendor relationships and terms that are trending well above plan.”
The company expects the Plan of Reorganization to become effective by September 15, once all closing conditions have been met.