Wet Seal, a teen clothing retailer, is closing all of its stores.
News that Wet Seal is planning to close all of its stores was discovered in a leaked memo to employees at its headquarters in Irvine, Calif. The letter informs the 148 employees that they will be losing their jobs as it closes down its headquarters.
According to the memo, which is from Jan. 20, Wet Seal was unable to obtain funding to continue operating the business. It was also unable to find a strategic partner that could help it through its struggles. Versa Capital Management, the company’s private-equity backer, refused to comment on the matter.
The Wall Street Journal notes that Wet Seal has 171 retail locations across 42 states. All of these locations will be closing down. This comes two years after the teen clothing company filed for bankruptcy in January of 2015. Versa Capital Management obtained Wet Seal for $7.5 million after it had filed for bankruptcy.
The leaked memo obtained by WSJ is also backed up by a worker adjustment and retraining notification in California. It includes the company’s 148 employees at its Irvine, Calif., headquarters. The notice says that the closure is permanent. It was filed with the state last week.
The closing of all Wet Seal stores has the clothing retailer joining a growing list of teen retailers going out of business. Over the last two year, American Apparel, Aéropostale, The Limited and Pacific Sunwear have all filed for bankruptcy, reports Fortune.
