New York City Junior apparel retailer Rue21 on Thursday said it is seeking to raise as much as $125 million in an initial public offering.
In a prospectus filed on Thursday with the U.S. Securities and Exchange Commission, the chain, which operates 500 stores, said it would use some of the proceeds to pay down all or some of its debt, which totaled $29.2 million as of Aug. 1.
Rue21 estimated it could have more than 1,000 stores within five years, including 100 new stores it plans to open in 2010.
The company’s same-store sales rose 4.1% in the half-year ended Aug. 1, while overall sales rose 33.3% to $233.1 million, with net income of $8.3 million over the same period.
Underwriters for the offering are Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan and Piper Jaffrey.