Rue21
YM Inc. · United States
Rue21 is a US value fashion chain for teens and young adults, founded in 1970 as Pennsylvania Fashions. After its third Chapter 11 filing in May 2024, its assets were acquired by the Canadian retailer YM Inc. on 29 June 2024.
| Founded | 1970 (as Pennsylvania Fashions) |
|---|---|
| Founder | Cary Klein (per infobox) |
| Headquarters | Warrendale, Pennsylvania |
| Owner | YM Inc. (assets acquired 29 June 2024) |
| Chapter 11 filings | 2002, 2017 and 2024 |
| Segment | Mass market and fast fashion |
| Website | rue21.com |
What is Rue21?
Rue21 is a United States specialty retailer of low-priced clothing, based in Warrendale, Pennsylvania, near Pittsburgh. Wikipedia reports that it was founded in 1970 as Pennsylvania Fashions Inc., and that Cary Klein bought the company from his father in 1989 and later developed the rue21 concept.
History
Pennsylvania Fashions filed for Chapter 11 bankruptcy in February 2002 and exited in May 2003, renamed rue21. Apax Partners took the company private in 2013. Rue21 filed again on 16 May 2017 and emerged on 22 September 2017, with the hedge funds BlueMountain Capital, Southpaw Asset Management and Pentwater Capital becoming owners. On 1 May 2024 it filed a third time, and all remaining 540 stores closed, with liquidation sales ending by 30 May.
Ownership and current status
YM Inc., a Canadian retailer, acquired Rue21's assets on 29 June 2024. YM reopened seven stores, all in Tanger Outlets centres, and planned to reopen up to 120. Wikipedia's infobox listed 32 locations as of 26 July 2024, and reports that online sales to US customers were no longer available as of 2025. These counts are dated and should be checked.
Business model and distribution
Rue21 was a store-based chain, largely in malls and strip centres. After the 2024 restructuring its channels are mainly physical, with online sales limited.
Why it matters
Rue21 is a prominent example of the pressure on US mall-based teen fashion chains. It sits alongside Express as a brand that survived bankruptcy only in reduced form under new owners, and it competes for the same customers as PacSun and Hot Topic.
Frequently asked questions
Who owns Rue21?
YM Inc., a Canadian retailer, acquired Rue21's assets on 29 June 2024, according to Wikipedia.
Is Rue21 still open?
All remaining 540 stores closed in May 2024, and YM Inc. has since reopened a small number. Wikipedia listed 32 locations in July 2024 and said US online sales were unavailable as of 2025.