The Warrendale, Pa.-based company said the filing was necessary to address financial challenges resulting from the tough retail environment.
BNP Paribas is the agent for the bank group providing the retail chain with its debtor-in-possession financing facility. Saunders Karp & Megrue, a private equity investment firm that is the debtor’s majority owner, is also participating in the DIP facility.
Pennsylvania Fashions said that its stores, distribution center and headquarters will continue operations as usual. It intends to use the Chapter 11 process to reevaluate its real estate portfolio, further develop its Rue 21 brand and remodel certain of its stores.
The company also operates under the trade name Fashion Factory. Rue 21 is a value specialty retailer for junior and young men’s apparel in outlet centers and in regional malls.
The company, which plans on closing some store locations, hired Keen Realty Consultants to assist in the sale of those sites. It currently operates 247 stores in outlet centers and malls in 39 states.