Wet Seal visits bankruptcy lawyers. The economy has hit everyone hard. Businesses are no exception. The teen apparel space has really been difficult and losing money for those who operate these stores. Two other teen apparel retailers have recently filed bankruptcy cases. Deb Shops and Delia’s consulted with bankruptcy attorneys. Both chains then filed bankruptcy. They could soon be joined by Wet Seal. Teen girls know Wet Seal. The stores are in many suburban shopping malls all over the country. Wet Seal is based in Foothill Ranch, California. The company has been losing money. It had no choice. It has consulted with bankruptcy lawyers about filing a bankruptcy case. The company announced it will be forced to file a Chapter 11 bankruptcy if it cannot immediately address liquidity concerns. The company just reported a very poor quarter of earnings. Wet Seal lost $36 million in the third quarter. The company is exploring all options to save the stores. It has consulted with an investment bank in addition to visiting bankruptcy lawyers. The company’s stock price has tumbled. The shares have lost almost all their value over the past year as losses have continued to grow. The future of the chain is now in jeopardy. The employees at all the stores are holding their breath as they do not want to lose their jobs. As the economy has gotten worse, it has created a domino effect. Businesses close. People lose their jobs. Many are unable to find new jobs. They cannot pay their bills. Many have to visit a bankruptcy lawyer themselves. The bankruptcy lawyers for Wet Seal have a lot on their plate if the company has to file a bankruptcy. The future of the business is on the line. If all the stores close, many of the employees could be filing Chapter 7 or Chapter 13 bankruptcies. If a bankruptcy is filed, most hope it can save the chain and it can emerge stronger after bankruptcy.
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