Teen Fashion Brand rue21 Files Bankruptcy, All Texas Stores Will Close

Broadway Square Mall in Tyler, Texas will be looking a bit different with the announcement that rue21 will be closing all of its stores within the next four to six weeks.

In post-pandemic times, it is still a challenge to operate an apparel store. Today's business climate is so much different. Customer shopping habits and preferences have shifted from traditional brick-and-mortar stores to shopping online.

The national branded chain announced Friday that they would be filing for bankruptcy for a third time and as a result, they would be closing all 540 stores nationwide. The retailer operates 50 stores throughout Texas and they will all soon close. This closure will affect around 5000 employees nationwide.

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Rue21 has been satisfying the teen appetite for fashion for nearly 50 years. That era will be closing soon after the Pittsburg-based company filed bankruptcy. The company previously shed more than half of their stores to turn the company around, but that has not worked and now they will be closing for good.

Rue21 East Texas stores that will be closing

• Tyler - Broadway Square Mall
• Texarkana - Centrall Mall
• Terrell - Tanger Outlet Center
• Paris - Paris Towne Center
• Lufkin - Lufkin Mall
• Corsicana - College Park Mall

GlobalData Retail's Neil Saunders tells CNN that a major reason for the company's downfall was its

growing irrelevance of the brand to teen consumers. Rue21 does not have a very compelling proposition and is losing customers to other retailers and to cheaper and more interesting fashion platforms like Shein.

The company will begin liquidation sales soon and the brand will disappear from malls and strip centers in four to six weeks. They're even selling the company name, which could signify the brand may reappear as an online retailer just like Bed Bath & Beyond has done.

It was two weeks ago that Express announced it was closing all of its stores too.