Wet Seal Inc. detailed terms of the liquidation of some 150 stores in a regulatory filing Wednesday.
The struggling teen retailer said it will receive about 23% of the proceeds from the liquidation. Hilco Merchant Resources LLC, which was hired by Wet Seal to handle the store closures, also is set to receive a share of the sales.
Under terms of the liquidation deal, Fleet Retail Group Inc. and S.A.C. Capital Associates LLC have agreed to subordinate their claims with Wet Seal to Hilco’s.
Last month Wet Seal said it planned to shutter the stores by the end of February. The company operates 463 Wet Seal stores and 96 Arden B. stores.
It has about 5,000 workers, but said 2,000 employees would be cut in the liquidation.
Meanwhile, Wet Seal shareholders are set to vote on a $56 million funding plan on Monday.
A few weeks ago Wet Seal named Joel N. Waller as chief executive. Waller, chairman of Brooklyn Park, Minn.-based Wilsons The Leather Experts Inc., is set to take over the struggling retailer Feb. 1 after he steps down at Wilsons.
Waller replaces interim chief Joseph Deckop who stepped in after Peter Whitford resigned amid the retail chain’s continuing sales woes.
