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Report: Teen specialty retailer could file Chapter 11 as soon as this month


Rue21 could be the next chain headed toward bankruptcy.

The teen apparel retailer, which is backed by private equity firm Apax Partners, is preparing to file for bankruptcy as soon as this month, according to Bloomberg.

Apax bought the Warrendale, Pennsylvania-based chain for approximately $1 billion in 2013. However, a decline in mall traffic has taken its toll on the retailer, which operates more than 1,000 stores.

Rue21, which continues to negotiate with lenders, has a forbearance agreement in place to delay a foreclosure. The agreement is valid through late April, the report said.

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