The court ordered dismissal of rue21’s May 2, 2024 Chapter 11 cases on September 16, 2024, under the final dismissal order Dkt. 431. The restructuring pursued store liquidation alongside a separate asset sale, with the court authorizing a sale to YM Inc. (Sales) on May 31, 2024.

New RSC Holdco, Inc., formerly New rue21 Holdco, Inc., and its affiliated debtors received a final dismissal order Dkt. 431 on September 16, 2024, concluding their Chapter 11 path through dismissal after pursuing store liquidation and a parallel asset-sale process.

The retailer filed on May 2, 2024, with more than 540 stores across 45 states. In her first-day declaration Dkt. 19, interim chief executive Michele Pascoe attributed the liquidity deterioration to pandemic effects, changing consumer behavior, online competition and macroeconomic pressures. Defaults under the company’s credit facilities in October 2022 led to amendments and waivers, but the debtors reported only $27,000 in cash at filing. They determined that going-concern purchase proposals would not exceed liquidation proceeds and engaged Gordon Brothers to conduct store-closing sales.

The wind-down paired inventory liquidation with efforts to monetize remaining assets. The court approved bidding procedures Dkt. 194 on May 23, 2024, and entered the sale order Dkt. 247 on May 31, authorizing the sale of certain assets to YM Inc. (Sales) free and clear of liens, claims, interests and encumbrances. Separately, the debtors sought to eliminate occupancy and service costs as stores shut, including through the second omnibus lease-rejection motion Dkt. 170 and the executory-contract rejection motion Dkt. 229.

The liquidation used secured lenders’ cash collateral. The June 17, 2024 final cash-collateral order Dkt. 310 authorized that use under an approved budget, with replacement liens, superpriority claims and interest payments providing adequate protection to prepetition secured creditors. This financing framework supported the wind-down before the September dismissal.

The court ordered dismissal of rue21’s May 2, 2024 Chapter 11 cases on September 16, 2024, under the final dismissal order Dkt. 431. The restructuring pursued store liquidation alongside a separate asset sale, with the court authorizing a sale to YM Inc. (Sales) on May 31, 2024.

New RSC Holdco, Inc., formerly New rue21 Holdco, Inc., and its affiliated debtors received a final dismissal order Dkt. 431 on September 16, 2024, concluding their Chapter 11 path through dismissal after pursuing store liquidation and a parallel asset-sale process.

The retailer filed on May 2, 2024, with more than 540 stores across 45 states. In her first-day declaration Dkt. 19, interim chief executive Michele Pascoe attributed the liquidity deterioration to pandemic effects, changing consumer behavior, online competition and macroeconomic pressures. Defaults under the company’s credit facilities in October 2022 led to amendments and waivers, but the debtors reported only $27,000 in cash at filing. They determined that going-concern purchase proposals would not exceed liquidation proceeds and engaged Gordon Brothers to conduct store-closing sales.

The wind-down paired inventory liquidation with efforts to monetize remaining assets. The court approved bidding procedures Dkt. 194 on May 23, 2024, and entered the sale order Dkt. 247 on May 31, authorizing the sale of certain assets to YM Inc. (Sales) free and clear of liens, claims, interests and encumbrances. Separately, the debtors sought to eliminate occupancy and service costs as stores shut, including through the second omnibus lease-rejection motion Dkt. 170 and the executory-contract rejection motion Dkt. 229.

The liquidation used secured lenders’ cash collateral. The June 17, 2024 final cash-collateral order Dkt. 310 authorized that use under an approved budget, with replacement liens, superpriority claims and interest payments providing adequate protection to prepetition secured creditors. This financing framework supported the wind-down before the September dismissal.