Wet Seal to close all stores as it “will receive no further financing”

The Californian apparel firm has hang the ‘closed’ sign for once and all as reported over the weekend. Wet Seal’s ultimate decision comes barely after two years after it closed down two-thirds of its commercial network and filed for Chapter 11.

A letter dated January, 20 cited by the ‘Wall Street Journal’, gathers Wet Seal vice president Michelle Stocker’s words. Stocker wrote that the retailer could not find the funding or partnership it needed, and “will receive no further financing for its operations.’’

That same day, the Irvine-based company reportedly filed a notice with the state announcing it was firing 148 employees from its headquarters in what it described as a “permanent” closure.

To date, Wet Seal’s owner, Versa Capital, has declined to make any comments in this regard.

In early 2015, Wet Seal closed two-thirds of its locations and laid off almost 3,700 workers, filing for Chapter 11 bankruptcy protection, recalls ‘USA Today’. Back then, the argued goals for this decision were to retrench, gain focus on its best performing storefronts and give their online channel a big push.

In a recent report, A.T. Kearney’s Greg Portell, said the broader issues facing retailers like Wet Seal are “a group of consumers who are expecting faster, more responsive, apparel options.” The lead partner in the retail practice for A.T. Kearney further explained that 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."