Rue21 Bucks Retail Development prepares to open 15 new shops

By jimadmin On Dec 19, 2020

Amid the widespread store closings sparked by the coronavirus pandemic, Rue21 is bucking the trend by opening more than a dozen new outposts.

The retailer announced this week that its business “significantly outperforms” the clothing market. As such, it became known that three new stationary locations had been opened. Another 15 units are planned for the next year.

“Today’s announcement is a testament to the leadership of the CFO and the entire executive team in executing our operational strategy and puts us in the enviable position to invest in building the Rue21 brand, new digital capabilities and opening new stores,” said CEO Bill Brand, who was named to the top post just over a month ago.

Rue21 currently operates 673 stores in 45 states as well as its online platform at www.Rue21.com. A new loyalty program called Rue Rewards was also recently launched, which the company says has more than 2.8 million members.

Along with the announcement, the Pittsburgh-based chain announced that its “strong financial position” has allowed it to refinance its existing term loan, increase available liquidity and reduce its cost of capital. To date, total liquidity exceeds $ 100 million and the new capital structure will enable the company to accelerate strategic growth initiatives, including improvements to its omnichannel services.

“Today is an exciting day as we have achieved our goal of putting Rue21 on a sound financial footing in an unprecedented time,” said CFO Michele Pascoe, who noted the retailer continues to exceed expectations and generate comparable sales that are above the results of the previous year. “In addition, our reduced debt burden signals our financial strength to the partners of sellers and landlords.”

Rue21 filed for bankruptcy three years ago. At the time, it was struggling with a decline in pedestrian traffic to shopping malls and the rise of digital channels. The Chapter 11 process gave the chain an opportunity to reduce its in-store footprint by more than 420 stores while reducing millions in debt as lenders acquired the company from private equity firm Apax Partners.