Bankers on the hook as Rue21 deal looks less appealing

|By:, SA News Editor

JPMorgan (JPM), Goldman Sachs (GS), and BofA (BAC) could be out tens of millions of dollars on commitments the banking trio made to help finance the $1.1B buyout of Rue21 (RUE), according to The New York Post.

Potential buyers of the debt that was created to finance the Rue21 buyout are increasingly skittish with apparel retailers suffering from a weak Back to School season and cutting guidance heading into the holiday season.

On a valuation basis, the $42 deal price for Rue21 looks quite lush.