Rue Part 2: How Rue21's Bankruptcy Impacts Unseen Workers in a Struggling Town
Dedicated warehouse employees are out without severance or health care
There are several invisible forces that make our lives livable and convenient. Behind the scenes, a vast, unseen workforce show up daily, working late nights and arriving before sunrise to keep our economy churning.
When we order something online, poof! It gets delivered.
When we shop in stores, ta-da! Tables are piled high with neatly folded summer sweaters in five colors, and vegetables are fresh and neatly stacked. We don’t even need to think about how it all works.
Lucky us!
And I get why we don’t. We’re all busier than ever. If we’re not working, we’re managing our households or food shopping or just trying to find a quiet moment. (Please, just for five minutes.)
However, it takes a considerable team of people to transport goods, get them to the right place, and stock shelves. These people are truck drivers, retail employees, and warehouse workers. This work entails long hours, physical labor, and often strenuous working conditions.
As of 2023, the United States employed 10.6 million people in the transportation and warehousing industry. Most people don't understand this work because they don't ever think about it; they don’t need to.
I call this the unseen workforce. Most of us move about our day and don't notice the people or the significant work that goes into making life comfortable for the rest of us; we just expect it to happen.
The rue21 executives didn't give the people behind the scenes much thought, either.
Weirton, West Virginia
Rue21 operated a warehouse in Weirton, West Virginia. The company announced it was filing for bankruptcy earlier this month. It’s closing all stores and ceasing all operations, including laying off everyone who worked at the warehouse.
Weirton is at the very tippy top of West Virginia. It's in the panhandle, and it has a border with Pennsylvania and a border with Ohio.
Shortly after the twentieth century, the town of Weirton experienced a shift in industry. It went from farming and small businesses to being one of the major players shaping American industry.
Weirton Steel went on to become the fifth-largest steel producer in the country. The town prospered, and its residents enjoyed the boom.
"Into the mid-1970s, Weirton reaped the blessings of the 12,000 well-paid jobs at Weirton Steel. Its citizens enjoyed one of the state's highest per capita income levels and the highest percentage of home ownership." - WV Encyclopedia.
However, that prosperity would not last. In 1984, Weirton Steel was sold to its employees by National Steel. The mill was then sold to Cleveland-Cliffs, which produced tin plate finishing.
In May of last year, the company laid off 300 people.
In February 2024, the company announced that it would close the Weirton plant entirely in April, laying off about 900 employees.
Now, rue21's warehouse team in Weirton has also lost their jobs.
Residents Have Been Through A Lot
Every decade, Weirton has lost population.
The 2020 census recorded 19,163 residents, down from its peak population of 28,000 in 1970.
According to census reports, the median household income in Weirton is $57,373. The median income for the United States as a whole is $74,755.
The town sits right in the middle of the Appalachian mountain range.
It snows in the winter and is hot and muggy in the summertime. July is the hottest month, with most days topping out at 84 degrees. It's also the rainiest, clocking an average of twelve days of rain per month.
"Growing up, I hated Weirton. It was a place where people always reminisced about the past, because there wasn't much to look forward to in the present." - Ella Jennings, WV Public Broadcasting
Jennings continues,
"It wasn't an exciting place to be a kid.
The West Virginia Limited Video Lottery Act in 2001 allowed up to 9,000 video lottery retailers in the state, and paired with the decline of the steel industry in Weirton, these cafes provided many businesses with easy revenue."
Weirton is struggling to maintain its population and build a thriving community. Working people here are grappling with the stark realities of everyday life: paying their rent and skyrocketing food costs.
The rue21 CEO and executives, who made hundreds of thousands of dollars a year, declared bankruptcy and left. No conversations were had with these employees. No transparency was offered. No severance. Health care was discontinued immediately.
See ‘ya.
The CEO, Josh Burris, recorded a three-minute video and told everyone they no longer had jobs. His statement sounded like it was written by AI, and he read it as if he were placing his order at Starbucks.
I heard it. Here's an excerpt:
"Through this process (bankruptcy), rue21 will close its doors, liquidate its assets, and wind down operations to maximize value for our stakeholders."
To maximize value for our stakeholders.
Okay.
Nobody wants to hear that part, man.
Side note: don’t talk to your teams like this.
"I'm just really really upset and mad."
The employees of the Weirton warehouse were dedicated.
When I say dedicated, many had been employed there for twenty-five years or longer.
They often worked in dangerous conditions, and their hourly wage was insufficient.
"I worked there for twenty-eight years. I started there when I was young, in my early twenties. I raised my family while working there. I lived paycheck to paycheck like most people do, but the work was hard work, and in the summertime, it was so hot in there it was ridiculous. There would be times when people would be passing out left and right and we had to just pick up and keep going.
They did have fans in the building, but there was no air conditioning, and the pay was not competitive to other distribution centers in our area, but for me, it was better than flipping burgers somewhere." - *Stephanie, warehouse employee
You know who doesn't live paycheck to paycheck?
The CEO and executives do not live paycheck to paycheck and do not pass out at work because there is no AC in their offices.
I know that for sure.
"I'm just really really upset and mad." - Stephanie.
No one told these people they didn't have jobs; they found out on social media.
Initially, severance was on the table. Then, it was quickly rescinded.
"The severance was to paid for however many years you worked there. Some people was 2 years 3 years. One girl was 20 years. These people were expecting this pay on our regular paydays which would have been last Friday, and they did not get them." - Stephanie
Some people were furloughed in March with a callback date in June. No one told these people they didn't have jobs; they found out on social media. They didn't even get to hear Burris’ three-minute Starbucks-order AI statement.
Another warehouse employee shares her experience:
"I've worked at the Rue 21 distribution center for (over 25) years. We were pulled into the lunchroom on Thursday, May 2nd, and told we don't have jobs anymore. No severance pay, and we lost our health insurance. It was disheartening. (We've) committed that much time with a company to be pulled in a lunchroom and told this.
I've met a lot of great people along the way. As for Josh Burris, he only showed his face once since joining rue. Promising us he was coming down every quarter and had great plans for the company, yeah great plans for his pockets." - *Melissa, warehouse employee.
Right. So, warehouse managers were directed to gather these employees in a lunchroom and told them they no longer had jobs, effective immediately, or they found out online.
Cool.
The last year rue21 was in operation, the company was in complete shambles due to abhorrent business decisions. Now, regular, hard-working people are trying to pick up the pieces while Josh Burris attends the Kentucky Derby (allegedly).
The Human Cost of Mismanagement
The story of Weirton, West Virginia, is a harsh reminder of the real-life suffering behind CEO recklessness and company mismanagement.
Once a booming steel town, Weirton has been repeatedly battered by factory closures, leaving a trail of unemployment and anguish. The recent closure of the rue21 warehouse is just the latest blow, highlighting the lack of concern corporations have for their employees when faced with utter mismanagement from the top.
The blame falls squarely on executives like Josh Burris, who prioritize "maximizing value for stakeholders" over the well-being of the people who made the company successful. These dedicated employees, some with decades of service, were left with no severance, no healthcare, and no warning. Their stories expose the harsh reality of the unseen workforce in America, where loyalty and hard work aren't always rewarded.
The future of these warehouse workers is uncertain. The town desperately needs new opportunities and investments to rebuild its economy and give its residents a chance to thrive.
We must see the unseen workforce and value their hard work. We must hold corporations accountable for their impact on small-town communities and people living everyday lives. Perhaps then, towns like Weirton can rebuild, and dedicated employees like Stephanie and Melissa will find better opportunities to work for companies that pay them a living wage and treat them with dignity and respect.
*Names have been changed to protect the identity of the employees. Any likeness is coincidental.
Read Part One Here:
Kit Campoy is an author and retail expert with 20+ years of experience leading retail teams. She thrived on building relationships with customers and motivating sales teams. Now, as a ghostwriter, she leverages this people-centric approach to craft compelling content that resonates and ignites brand loyalty.
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I was employed at the Rue21 DC while the furlough and terminations were happening, it was devastating to see my friends and co workers being escorted out not knowing what was about to happen. I put my 2 week notice in the day before this all started happening, I started applying for jobs before this because of uncertainty. I feel so sorry for the people I worked with that they had to go through something like this. Josh Burris is definitely the worst human being , not even having the guts to show his face through this whole process. Leaving these people after years of dedicated services with not a damn thing and just throwing them to the curb. What a coward!!!!
"The last year rue21 was in operation, the company was in complete shambles due to abhorrent business decisions." The poor business decisions began much earlier....we doubled the size of the DC in 2012 in order to accommodate ecommerce. Then about after 2-3 years, they outsourced the ecomm to a third party, who absolutely botched orders at every turn (see any number of facebook posts for the last decade). Meanwhile, 50% of DC was empty It's definitely a shame for so many of the long tenured DC workers who now have to look for jobs...I wish them all luck.