Officials of teen clothing retailer Rue21 recently filed for bankruptcy and announced plans to close all of its stores.

Two-minute impact

The voluntary petition was filed May 2, according to court filings with the U.S. Bankruptcy Court of Delaware; going-out-of-business sales began popping up the next day throughout its 543 stores across the country.

An Austin-area representative for Rue21 said officials plan to have all of its stores closed by early June.

The specifics

In a statement to the court, interim CEO Michele Pascoe cited the COVID-19 pandemic, as well as a shift in consumer preferences toward online retailers, for the downfall.

As of May 2, Rue21 employed 4,913 people and officials estimated their debt and liabilities each to be between $100 million and $500 million.

Rue21 is being represented by Young Conaway Stargatt & Taylor, who did not respond to Community Impact's request for comment by the time of publication.

One more thing

The Pennsylvania-based clothing shop operates 50 locations in Texas, including: