rue21 secures final court approval to conduct closing sales at stores

By Caroline Salls

Pittsburgh, June 13 – rue21 Inc. received final court approval to hold store-closing sales under a consultant agreement with Gordon Brothers Retail Partners, LLC, according to an order filed Monday with the U.S. Bankruptcy Court for the Western District of Pennsylvania.

As previously reported, rue21 announced that it began closing 400 underperforming stores out of its 1,179 total in April. Further stores may be shuttered.

As liquidation consultant, Gordon Brothers will receive a fee of 1½% of the gross sale proceeds.

The company said it expects the liquidation of store closure assets to yield about $37 million in net proceeds.

The store-closing sales began on April 14 and are expected to run until at least June 25.

rue21 is a Warrendale, Pa., specialty retailer focused on teens that filed for bankruptcy on May 15 under Chapter 11 case number 17-22045.

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