Wet Seal Inc. said it is closing 338 stores and will lay off 3,695 full- and part-time employees “after assessing its overall financial condition” and failing to “successfully negotiate meaningful concessions from its landlords.”
The Foothill Ranch-based women’s apparel retailer will continue to operate 173 stores and its e-commerce business. The closed stores represented approximately 48% of its net sales for the nine months ended Nov. 1.
“This was a very difficult decision to make, but after reviewing many other options since I returned to the company in September, our financial condition leaves us no other alternative than to close these stores,” Chief Executive Ed Thomas said in a statement.
Wet Seal recently said it might “seek a restructuring or other relief under the provisions of the U.S. Bankruptcy Code” if it can’t address its immediate liquidity needs.
