Rue21 Declares Bankruptcy

Rue21 (Warrendale, Pa.) has filed for Chapter 11 bankruptcy protection. In part, it hopes that bankruptcy will allow it to reestablish normal deals with vendors that had begun demanding cash on delivery in exchange for products, reports USA Today.

The retailer had already begun closing stores before the filing but warned that it still may shutter additional stores. The retailer will also be cutting staff.

The company has worked out deals with several of its lenders which, according to CEO Melanie Cox, “represents their confidence in rue21’s future success even at a time of significant retail industry change."

The company previously filed for bankruptcy in 2003, as well.