Wet Seal to have lay offs at headquarters

As Wet Seal has struggled financially in the past year, the youthful retailer has confirmed that it is considering bankruptcy recently. As a result of this, the teen apparel company is going to lay off 148 workers at its headquarters.

The fast fashion apparel company is headquartered at Irvine in California. According to Wet Seal’s LinkedIn page, the retailer has approximately 1,162 employees currently. The layoffs are expected to be official by March 21 of this year. If the layoffs go through, this won’t be the first time the company has struggled with terminating its staff. The SoCal-based company laid off approximately 3,695 employees two years ago before filing for Chapter 11 bankruptcy once before. However, under new ownership of private equity firm Versa Capital Management LLC, the fashion company turned things around temporarily. It seems that after a few years, Wet Seal has faced the same struggles.

Kicking off 2017, Wet Seal is not the first of retailers to succumb to bankruptcy. The Limited also just filed for Chapter 11 this year and American Apparel continues to go through their bankruptcy. Although Wet Seal hasn’t made any public statements on their bankruptcy, it wouldn’t be unlikely for the company to file soon, especially with more mass layoffs announced.