After a tough year in which many retailers have shuttered physical stores, Rue21 has announced that it will buck the trend and open 15 new stores next year.
The company is in a position to do this because of its strong financial situation and its agreement with Bank of America and Tiger Finance that will refinance its existing loan, increase available liquidity and lower its cost of capital. The retailer’s current liquidity exceeds $100M.
The company’s CEO Bill Brand said in a statement that this announcement “is a testament to the leadership of the CFO and the entire executive team in executing our operating strategy and putting us in the enviable position of investing in building the Rue21 brand, new digital capabilities and opening more new stores.”
“Today is an exciting day as we’ve accomplished our goal of putting Rue21 on a secure financial footing in the most unprecedented of times,” said Michele Pascoe, Rue21’s CFO, commented. “I want to thank Bank of America and Tiger Finance for recognising our focus on working capital productivity and gross margin expansion, and for providing us with the opportunity to emerge from a post-pandemic world in a position to accelerate Rue21’s growth.”
