Teen clothing retailer Rue21 to close 400 stores in US
Teen clothing retailer Rue21 has announced its plans to close almost 400 stores across the US as it intends to focus more on its online business.
Even after the closures, the company will have around 700 stores in 48 states, reported Chron.com.
In a Facebook post, the company called the decision 'difficult but necessary'.
The retailer did not disclose the details regarding the closures, reported Crainsdetroit.com.
In an email to Crain's, the company stated: “As part of our ongoing business transformation into a more cost efficient operator, we are closing unprofitable stores across our fleet in order to focus on our many hundreds of highly profitable locations. The exact number and timing of these closings will be determined in the coming weeks.”
Currently promoting store-closing sales through its online channel, the retailer has been struggling due to declining traffic in malls and competition from online companies.
Recent years have seen several offline retailers closing down their outlets or filing for bankruptcy protection.
Last November, US-based apparel retailer American Apparel has filed for its second Chapter 11 bankruptcy in a little more than a year.
It signed an agreement with Canadian company Gildon Activewear to sell its assets.
At the time, American Apparel had then 110 outlets in 28 US states, and more than 80 stores in international markets.
In the same month, online fashion retailer Nasty Gal announced that it was preparing to file for Chapter 11 bankruptcy protection.