Apax Partners portfolio company Rue21 Inc is reportedly the latest private equity-backed fashion retailer to face bankruptcy, which could come as soon as this month.
The teenage clothing seller took on debt during Apax’s $1.1bn buyout in 2013, and is currently struggling to pay down a $1bn debt pile according to Reuters, which cited unnamed sources familiar with the company.
It said Rue21 had brought in an operational restructuring advisor to help prep for bankruptcy, as well as real estate advisors to help it negotiate with landlords.
Apax initially bought into Rue21 way back in 1998, before completing the take-private deal in 2013.
Earlier this year Sun Capital-backed women’s clothing retailer The Limited filed for bankruptcy protection and closed its stores, while Sycamore-backed Aeropostale slid into bankruptcy last year.
Last month Apax-backed Answers Corp filed for bankruptcy protection as it looked to reduce its debt by $471m.
Apax bought the business in 2014 in a $900m deal.
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