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Retail News => Stores Shutting Down This Year....2024 => Topic started by: retailisking on January 26, 2017, 12:25:55 PM

Title: The Wet Seal expected to file second Chapter 11, close all stores
Post by: retailisking on January 26, 2017, 12:25:55 PM
As a preliminary move, they're laying off 148 HQ workers
http://www.retaildive.com/news/wet-seal-to-lay-off-148-workers-at-socal-hq/434848
Title: Re: The Wet Seal expected to file second Chapter 11, close all stores
Post by: dmx10101 on January 27, 2017, 07:33:32 PM

It looks like it’s curtain time for The Wet Seal.
Another teen apparel retailer to close all stores
January 26, 2017 | By Marianne Wilson

The struggling teen retailer is closing its 171 stores, along with its headquarters in Irvine, Calif., after being unable to obtain the necessary cash infusion or find a buyer, according to several media reports. 
     
The news comes on the heels of another teen â€" focused apparel retailer, The Limited, shutting down its operations.

“Unfortunately, the company was unable to obtain the necessary capital or identify a strategic partner, and was recently informed that it will receive no further financing for its operations,” Wet Seal VP and general counsel Michelle Stocker wrote in the letter to headquarter employees, a copy of which The Wall Street Journal reviewed.

Wet Seal filed for bankruptcy in January 2015, shortly after closing some two-third of its stores. It was acquired by private-equity firm Versa Capital Management for $7.5 million in cash and $20 million debtor-in-possession financing. But the chain has struggled to find its footing amid increased competition from fast-fashion retailers and online players.