Wet Seal Files For Bankruptcy Protection

(RTTNews) - Struggling apparel retailer Wet Seal Inc. (WTSL, WTSLA) Thursday filed for bankruptcy protection, a week after stating that it is set to terminate thousands of full and part-time employees due to the closure of 338 retail stores.

The job cuts were announced after an assessment of the company's overall financial condition and its inability to successfully negotiate meaningful concessions from its landlords.

Wet Seal, which has engaged outside advisors to seek strategic and financial alternatives, indicated in December 2014 that it may file for bankruptcy protection upon failure to meet its immediate liquidity needs. Wet Seal has been posting successive losses.

According to a regulatory filing made on Thursday, Wet Seal has assets of $10 million-$50 million and liabilities of $100 million-$50 million.