Wet Seal is the latest retailer to close its doors. In late January, news outlets reported that the retail chain planned to close all locations. Wet Seal, which targets the 18-24 demographic, proceeded to file for Chapter 11 Bankruptcy in early February. As reported by Fortune, the company listed assets between $10 million and $50 million and liabilities anywhere from $50 million to $100 million. After being unable to raise new capital or find a buyer, a Delaware judge approved the liquidation of the once popular clothing chain’s assets through shutdown sales in all stores. According to Law360, the company is also seeking to liquidate assets by auctioning off its name and related intellectual property. Wet Seal asked for a bid deadline of February 28, hoping that the value of the IP will be higher while the company’s e-commerce is still up and running. Wet Seal’s demise comes two years after its first Chapter 11, when Versa Capital Management purchased the company. The restructuring plan failed to reinvigorate the company, however, and the store now joins the growing list of retail casualties for the teen and young adult market.
Libby Pica is an Entertainment Highlight Contributor for the Harvard Journal of Sports and Entertainment Law and a current first year student at Harvard Law School (Class of 2019).