Looks from Rue21.com.

Rue21 said it has received bankruptcy court approval of its reorganization plan, clearing the way for it to exit bankruptcy proceedings.

Melanie Cox, chief executive officer, said, “We are very pleased to have moved through the restructuring process in a relatively short period. With the support of our lenders, our landlords, all of our business partners and the hard work of our team, the company has performed consistently well ahead of its liquidity plan, and exceeded its second quarter target for adjusted EBITDA by over 200 percent.”

Cox added that the company can now “moved forward from a position of renewed strength.”

The company expects the reorganization plan to become effective by Sept. 15, provided all closing conditions are met.

Upon exit, the teen chain will have wiped out about $700 million in debt. That debt was loaded onto the balance sheet from a $1.1 billion leveraged buyout led by Apax Partners, a private equity firm. It wasn’t immediately clear exactly how much of a recovery unsecured creditors would get, but it is estimated to be in the range of 5 cents on the dollar. And while that is a small amount, it still makes the bankruptcy one of the few where unsecured creditors don’t exactly get wiped out – not to mention one of the few retailers that filed Chapter 11 and got to exit as a going concern.

The teen retailer operates about 780 doors across 45 states. It filed its Chapter 11 petition for bankruptcy court protection on May 15.