Rue21's second Chapter 11 was dismissed on September 16, 2024, less than five months after filing, after the debtors ran the cases on cash collateral to wind down their store footprint and market their intangible assets rather than pursue a plan. The New RSC Holdco debtors (formerly New rue21 Holdco) — a Warrendale, Pennsylvania specialty apparel retailer operating more than 540 stores across 45 states with roughly 4,900 employees — commenced the cases on May 2, 2024 before Judge Brendan Linehan Shannon in Delaware, framing the filing as a retail liquidation running in parallel with a sale of the brand's intangible assets (Chapter 11 PetitionDkt. 1).

The case built on a longer erosion. Having emerged from a 2017 Chapter 11 that cut more than $700 million of funded debt and closed roughly 400 stores, rue21 posted $122.5 million of Adjusted EBITDA in 2021 before COVID-19 aftershocks, shifting consumer behavior, online competition, and macroeconomic pressure reversed the recovery and drained liquidity (Declaration of Michele PascoeDkt. 19). At the petition date the debtors carried $194.4 million of secured debt across two first-lien facilities: a $164.7 million Term Loan agented by Blue Torch and maturing in January 2026, and a $29.7 million ABL facility agented by Bank of America and maturing in December 2025, each holding first priority on its own collateral pool and a second priority on the other's (Declaration of Michele PascoeDkt. 19).

Postpetition liquidity was cash-collateral-only; no DIP loan or new-money facility was sought. Interim cash-collateral authority entered on May 3, 2024 and a final order followed on June 17, 2024, conditioning use of cash collateral on an Approved Budget and giving the prepetition ABL and Term Loan lenders adequate-protection liens, superpriority claims, and replacement liens to the extent of any diminution in value. With the going-out-of-business sales and the intangibles sale substantially advanced, the court dismissed the Chapter 11 cases on September 16, 2024, effective on entry, while expressly preserving the final cash-collateral order and related collateral assignments so that wind-down distributions could continue under the existing collateral framework.