NEW YORK — Pennsylvania Fashions Inc. has emerged from bankruptcy proceedings with a new name, Rue 21 Inc.
As reported, Rue’s parent, Pennsylvania Fashions Inc., filed for Chapter 11 in February 2002. The company elected to begin the new chapter of its retail history under its better-known nameplate.
Attorney Rob Feinstein of Pachulski, Stang, who represented the unsecured creditors committee, said it was still unclear how much unsecured creditors would be able to recover. As part of the company’s plan of reorganization, it contributed $1.5 million in cash and notes to a litigation trust in connection with claims against former shareholders of Pennsylvania.
According to bankruptcy court documents, there is also the possibility that a “fraudulent conveyance” lawsuit might be filed against the former shareholders in connection with the recapitalization of the company several years before it filed for bankruptcy.
The recapitalization, Feinstein said, resulted in private equity firm Saunders Karp & Megrue becoming the majority shareholder. The equity firm is still Rue 21’s largest shareholder.
According to Feinstein, Rue 21, based in Warrendale, Pa, operates 169 stores in 37 states and caters to customers between the ages of 15 and 30.
@juicebeauty, where @gwynethpaltrow holds the title of creative director of makeup, has become one of the foremost labels in the organic beauty category –– with sales on track to hit $100 million this year. What’s behind the rapid growth the brand is experiencing right now? It all started in 2005 when the wellness movement was just getting started. Read more on WWD.com. #wwdbeauty
Stay up to do date with breaking news and trending stories with WWD’s “The Essentialist.” Our newsletter delivers the top news in fashion right to your inbox. Want more info? Link in bio. #wwdfashion (📷: @kukukuba)
"I want to tell a story that inspires people to feel good about themselves, but also I'm making a commentary about the lack of female stories and female directors and saying this should change," said @imheathergraham on her latest project "Half Magic." The comedy feature, which the actress wrote and directed, is based on her own struggles as a woman in show business. Read @andrewnodell's full interview with Graham on WWD.com. #wwdeye (📷: @jgreenery)
@meltcosmetics cofounders @lora_arellano and @danabomar built their brand on a single idea: a true matte lipstick. To set the brand apart, they said they always put their customers first –– including a personalized note in each package. #wwdsummits #wwdbeauty
@moncler unveiled its latest project, #MonclerGenius, yesterday at Milan Fashion Week. The Italian outwear maker gave show-goers a preview of the monthly collections – which were created by eight designers and creative talents including Pierpaolo Piccioli, Simone Rocha, Craig Green and more – that will start rolling out in the summer.