U.S. teen vogue retailer Rue21 filed for Chapter 11 protection on Monday in the Western District of Pennsylvania chapter courtroom.
The retail chain, which sells funds-priced clothes and niknaks at over ,100 shops throughout the United States, listed property and liabilities in the vary of $ billion and $10 billion, in accordance to the court filing.
Rue21 has entered right into a Restructuring Assist Settlement with sure stakeholders and expects to proceed regular operations all through the Chapter 11 course of, it mentioned in a press release late Monday.
It has additionally reached agreements to acquire up to $125 million in debtor-in-possession (DIP) financing from present lenders, and up to $50 million in new cash time period mortgage DIP financing from a gaggle of its present time period mortgage lenders.
Rue21 mentioned the new financing "will help day-to-day operations throughout the reorganization", including that they could consider further retailer closures, other than the deliberate 400 retailer closures it started final month.
The retailer, reeling underneath debt and declining foot site visitors, is struggling to repay a debt load of almost $ billion. A lot of that debt stems from a $. billion leveraged buyout by non-public fairness agency Apax Companions in 2013.
Rue21 is the newest in a long line of retailers filing for bankruptcy as consumers shift their spending on-line. In April, low cost shoe retailer Payless ShoeSource filed for chapter and deliberate speedy closures of 400 of its over four,000 shops worldwide.