Clothing chain files for Chapter 11 bankruptcy reorganization

DENVER BUSINESS JOURNAL - Teen- and young-adult fashion retail chain Rue21 has filed for Chapter 11 bankruptcy protection from creditors.

The filing, made in U.S. Bankruptcy Court in Pittsburgh, was announced late Monday by the Pennsylvania-based, privately held chain.

Rue21 lists 18 stores in Colorado.

News of the filing comes a month after the retailer disclosed plans to close 400 of its 1,200 stores nationwide, many of them in shopping malls.

The Chapter 11 filing also included a deal for $175 million in debtor-in-possession financing in two separate deals that Rue21 said will give it the liquidity it needs to continue operating, including paying employees and vendors for goods and services after the bankruptcy filing.

Read more at the Denver Business Journal: http://bizj.us/1p6hlh

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