In a sign of devastating times for the retail sector, fashion retailer Rue21 announced that they have filed for Chapter 11 bankruptcy reorganization. The company is closing approximately 400 stores and laying off an undisclosed number of employees.
The retail industry faces stiff competition from digital commerce and changing consumer preferences. Rue21 is not the first and definitely will not be the last high profile brick and mortar retailer to require bankruptcy protection. Other retailers include Bebe, The Limited and Wet Seal.
It is clear that as consumer shopping shifts more and more to digital options, traditional retail companies will have to quickly shift gears or may require some type of bankruptcy reorganization in order to survive these changing times.