Published: Friday, January 27, 2017 @ 11:50 AM



— Teen clothing retailer Wet Seal will abruptly close all of its 148 brick-and-mortar stores.

According to a letter obtained by The Wall Street Journal, the retailer is permanently shutting down and will lay off all of its workers. The company is headquartered in California.

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Back in 2015, Wet Seal closed 338 of its 511 stores and filed for bankruptcy protection. Versa Capital then acquired the brand for $7.5 million in April 2015.

Local stores at the Dayton Mall and the Mall at Fairfield Commons in Beavercreek shut down in January 2015. The only store in Ohio that remained open was the location at Easton Town Center in Columbus.

Wet Seal isn’t the only retailer closing locations and laying off employees this month.

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On Wednesday, Abercrombie & Fitch eliminated 150 positions at the corporate level. The clothing retail chain is headquartered in New Albany, just outside of Columbus. In August, Abercrombie & Fitch Co. announced 60 stores in the U.S. would shut down.

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There is one store location at the Mall at Fairfield Commons in Beavercreek, and another location at Kenwood Towne Center in Cincinnati. A location at the Dayton Mall also closed several years ago.

Several retailers — including The Limited, Macy’s, Sears and Kmart — have already announced layoffs or store closures in recent months, and experts predict more businesses will continue to downsize.

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“All retailers see a bump in sales during the holiday season. Announcements of store closings would have hurt their sales during the holiday shopping season because it would have sent the wrong message to customers,” said Serdar Durmusoglu, marketing professor at the University of Dayton. “So, even if they might have made a closing decision months in advance, they might have held of announcing after the New Year.”

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» Bob Evans CEO: Restaurants will remain open</s>Two years after its first bankrutpcy, teen clothing retailer Wet Seal was reportedly considering a second one if it couldn’t find investors or a buyer. Instead, the retailer will lay off its 148 headquarters employees and close its 171 remaining stores.

This means, of course, that if you have a Wet Seal gift card, you should rush to the retailer’s website or to the nearest store to you to use it up as soon as you can, on what are sure to be some nice clearance sales if you’re a fan of the brand.

Wet Seal is joining a very sad club, with fellow clothing chains The Limited also closing its stores before filing for bankruptcy, and twice-bankrupt American Apparel starting to shutter stores as well.

“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,” the company’s vice president and general counsel wrote to headquarters employees in a letter last week that was leaked to The Wall Street Journal.

Teens and clothing shoppers are simply not visiting malls, and teen-focused clothing stores have been especially hard-hit in this change. Aeropostale is one exception, with a coalition of marketers and mall landlords rescuing the chain out of bankruptcy and re-opening it earlier this year. Wet Seal was hoping for a similar rescue, but it may have to happen after a formal bankruptcy filing, if at all.</s>Wet Seal, a teen clothing retailer, is closing all of its stores.

News that Wet Seal is planning to close all of its stores was discovered in a leaked memo to employees at its headquarters in Irvine, Calif. The letter informs the 148 employees that they will be losing their jobs as it closes down its headquarters.

According to the memo, which is from Jan. 20, Wet Seal was unable to obtain funding to continue operating the business. It was also unable to find a strategic partner that could help it through its struggles. Versa Capital Management, the company’s private-equity backer, refused to comment on the matter.

The Wall Street Journal notes that Wet Seal has 171 retail locations across 42 states. All of these locations will be closing down. This comes two years after the teen clothing company filed for bankruptcy in January of 2015. Versa Capital Management obtained Wet Seal for $7.5 million after it had filed for bankruptcy.

The leaked memo obtained by WSJ is also backed up by a worker adjustment and retraining notification in California. It includes the company’s 148 employees at its Irvine, Calif., headquarters. The notice says that the closure is permanent. It was filed with the state last week.

The closing of all Wet Seal stores has the clothing retailer joining a growing list of teen retailers going out of business. Over the last two year, American Apparel, Aéropostale, The Limited and Pacific Sunwear have all filed for bankruptcy, reports Fortune.</s>Troubled teen retailer Wet Seal LLC is closing all of its stores after it was unable to nail down fresh capital or a buyer.

In a letter dated Jan. 20, the retailer notified employees in its Irvine, Calif., headquarters that the office would be permanently closed and all of the workers would lose their jobs.

"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," Vice President and General Counsel Michelle Stocker wrote in the letter, a copy of which The Wall Street Journal reviewed.

There are 148 employees in the company's headquarters, according to a public notice of the layoffs. Wet Seal's website says the chain has 171 stores in 42 states.

Earlier this month, the Journal reported that Wet Seal was exploring its options, including a liquidation, sale or restructuring that could take place in or out of bankruptcy court.

A representative for Versa Capital Management LLC, Wet Seal's private-equity backer, declined to comment Thursday. Wet Seal didn't immediately respond to a request for comment.

Wet Seal previously filed for bankruptcy protection in January 2015. Versa later acquired the company out of chapter 11 for $7.5 million in cash, and at the time, promised to keep at least 140 stores open.

But after Wet Seal's exit from bankruptcy, the teen retailer continued to struggle and saw its sales suffer, even after cutting down the number of its stores, according to people familiar with the matter.

The layoff notice comes shortly after retailers American Apparel LLC and Limited Stores Co. notified employees they would lose their jobs in connection with bankruptcy filings. More than 3,500 manufacturing employees for American Apparel will be laid off after the retailer was unable to find a buyer to keep its stores and all three manufacturing properties open. Instead, Gildan Activewear Inc. bought the retailer's brand name for $88 million out of bankruptcy.

Meanwhile, The Limited closed all of its stores before filing for bankruptcy protection this month. Similar to American Apparel, the retailer was able to snag a bid from an affiliate of Sycamore Partners for its brand name and related e-commerce assets.

Apparel-focused retailers have been particularly distressed in recent years, thanks to falling mall traffic. In 2015, teen retailers including Aéropostale Inc. and Pacific Sunwear of California Inc. also turned to chapter 11 protection.</s>INDIANAPOLIS, Ind. – Wet Seal is reportedly closing all of its stores and laying off its employees.

In a letter obtained by the Wall Street Journal, the teen retailer notified employees in its Irvine, Calif., headquarters that the office would permanently close and all workers would lose their jobs.

“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,” said Vice President and General Counsel Michelle Stocker in the letter.

Wet Seal has 171 stores in 42 states, according to its website. One of those stores is located at the Castleton Square Mall in Indianapolis.

Wet Seal previously filed for bankruptcy protection in 2015. Versa Capital Management LLC later acquired the company for $7.5 million, and at the time, promised to keep at least 140 stores open.

But after the teen retailer continued to struggle and saw its sales suffer, people familiar with the matter told the Journal.

Times are tough for American retailers in general. Just this month, The Limited announced it would close all stores before filing for bankruptcy protection, and Sears Holdings announced the closure of dozens of Kmart and Sears locations. Both Talbots and The Loft also closed their doors at the Circle Centre Mall downtown.</s>Wet Seal, whose teen-focused fashions were once emblematic of California cool, is planning to close all of its locations, according to a report in the Wall Street Journal.

Citing a letter dated Jan. 20, the Journal says that Wet Seal vice president Michelle Stocker wrote that the retailer could not find the funding or partnership it needed, and “will receive no further financing for its operations.’’

Versa Capital, which owns the store chain, declined to comment, and an inquiry to Wet Seal did not immediately receive a response.

The closing of Wet Seal’s 171 stores comes just two years after the Irvine, Ca.-based chain closed two-thirds of its locations, laid off almost 3,700 workers and then, in Jan. 2015, filed for Chapter 11 bankruptcy protection. Its goals then were to retrench, focusing on its best performing storefronts while bolstering its online site.

With more than 3,000 people on its payroll according to its website, Wet Seal had once been a retail star. Founded in Newport Beach Ca. in 1962, it grew from a small swimwear destination to a popular, and profitable, store chain that mixed trendy, teen attire among its swimsuits, and exported a California vibe to malls across the nation.

But like many other retailers, Wet Seal struggled in recent years as consumers bypassed malls and chose to do their shopping online. The chain also dealt with heightened competition from a growing array of fast fashion giants, like Zara and H & M, who were making a play for the same fashion-fickle, youthful crowd.

Greg Portell, lead partner in the retail practice of the global strategy and management consulting firm A.T. Kearney, says the broader issues facing retailers like Wet Seal are "a group of consumers who are expecting faster, more responsive, apparel options.'' Even those that are adept at quickly filling their racks with the fashions of the moment "must have strong merchandising arms to anticipate and shape consumer preferences for styles. Failure to do so results in mark-downs and missed earnings no matter how fast a retailer is."

The list of companies that are cutting jobs and shutting stores has been rapidly growing. Just this month, American Apparel, which filed for bankruptcy protection late last year, said it would lay off roughly 2,400 employees. The Limited, after closing all of its stores, filed for bankruptcy protection. Macy’s said it would shutter 68 stores, and Sears announced that it would be closing 150 locations and selling its signature Craftsman tool brand.</s>This is tragic! The clothing store Wet Seal is closing all it’s stores and Twitter is not happy about it. See the angry reactions here!

This is sad news for shoppers everywhere. The retail store Wet Seal is closing the last remaining 171 stores around the country, according to Business Insider. The store was a former teen clothing staple, but foot traffic has just not stayed up in recent years and Wet Seal had already closed 338 stores back in Jan. 2015.

Well, as another clothing classic bits the dust, people took to Twitter in outrage that the beloved store was closing its’ doors. “The Limited, American Apparel, and now Wet Seal?” one Twitter user wrote, “90s fashion is truly dead.” Another user could not believe that Wet Seal would no longer be in existence and tweeted, “I was mad that wet seal in Sandhills was closing until I found out that ALL WET SEALS ARE CLOSING AND NOW IM LIVID.” Yikes! One shopper wanted to get her last buy in at Wet Seal’s website and stock up on her favorites before they’re gone. “About to go spend $17393739337 dollars online at wet seal before it’s gone,” she wrote. We feel you!

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While some were positively heartbroken at the news like this user, “Over half my closet is from Wet Seal and now it’s closing and that is my go to store and my heart has never been so hurt,” others were surprised it had lasted so long. “The most shocking part of the Wet Seal closing is finding out this didn’t happen 15 years ago,” someone posted. Shoppers are struggling to find new places to buy their clothes after the shocking news. “Wet Seal is closing and that’s the worst news I’ve gotten,” one tweet read, “I don’t even know where I’m going to shop now.”

HollywoodLifers, are you heartbroken to hear Wet Seal is closing? Sound off in the comments below!</s>SAN FRANCISCO, CA - JANUARY 07: Paper covers the windows at a closed Wet Seal store on January 7, 2015 in San Francisco, California. Wet Seal, a teen clothing retailer, announced that it closed 338 of its retail stores and laid off nearly 3,700 employees at year. (Photo by Justin Sullivan/Getty Images)

SAN FRANCISCO, CA - JANUARY 07: Paper covers the windows at a closed Wet Seal store on January 7, 2015 in San Francisco, California. Wet Seal, a teen clothing retailer, announced that it closed 338 of its retail stores and laid off nearly 3,700 employees at year. (Photo by Justin Sullivan/Getty Images)

Clothing retailer Wet Seal will close all stores, according to The Wall Street Journal.

According to the Journal, the teen retailer sent a letter to the company's workers at its California headquarters on Jan. 20, notifying them of the permanent shutdown.

"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's vice president, Michelle Stocker, wrote in the letter.

Wet Seal, which closed 338 stores two years ago, will close its remaining 171 stores in 42 states.

More than 1,000 store employees will be laid off, and 148 employees in the company's headquarters will also lose their jobs, according to a public notice.

In January 2015, Wet Seal previously filed for bankruptcy protection before being acquired by Versa Capital Management LLC for $7.5 million in cash.

Read more at The Wall Street Journal.</s>Struggling teen retailer Wet Seal is closing all 171 of its stores.

In a letter dated January 20 that was obtained by The Wall Street Journal, the apparel retailer notified employees working in the company's Irvine, California headquarters that the office was permanently shutting down and laying off all of its workers.

According to the Journal, Versa Capital, which acquired the brand for $7.5 million in cash in April 2015, couldn't raise the necessary funding or find a buyer to keep the brand alive.

Wet Seal closed 338 of its then-511 stores in January 2015, shortly before the company filed for bankruptcy protection. Then, Wall Street analysts said that falling foot traffic at shopping malls played a major role in Wet Seal's death spiral.

The teen retailer isn't the only brand facing store closures as shoppers ditch malls.

Earlier in January, The Limited, another apparel brand primarily based in malls, shut down all 250 of its stores and laid off 4,000 workers. Mall staples Sears and Macy's have also announced mass closures this year, with Sears planning to close 150 namesake stores and Kmart stores in 2017 and Macy's planning to shutter another 100 stores.</s>Wet Seal is the latest mall retailer to bite the dust.

The teen-oriented chain is closing its two remaining Twin Cities locations — at the Mall of America and the The Shoppes at Arbor Lakes in Maple Grove — as the company shutters all of its 170 stores nationwide.

The stores started marking down everything 20 percent earlier this week as part of store-closing sales, according to employees at the two local stores. One employee said the stores would likely close in early March, but it depends on how fast the remaining merchandise is sold.

Wet Seal is closing down its California headquarters and shuttering all of its stores after the company was unable to find a buyer, according to media reports. The retailer did not immediately respond to a request for comment.

It had filed for bankruptcy two years ago and closed about 338 stores around that time including Twin Cities locations at Rosedale Center, Southdale Center, Maplewood Mall and Burnsville Center. But its sales have continued to decline as consumers have gravitated toward fast-fashion retailers such as H&M, Forever 21 and Zara as well to off-price chains such as T.J. Maxx.

A number of mall-based chains aimed at young adults have been reeling of late. The Limited shuttered all of its stores earlier this year. American Apparel also has filed for bankruptcy.

In 2015, Aeropostale and Pacific Sunwear filed for bankruptcy, but they still have some stores open.
The clothing retailer Wet Seal announces the closing of all 148 of its brick-and-mortar stores after filing for bankruptcy in 2015. The news comes on the heels of recent announcements of the closings of other major clothing chains, such as The Limited.