Wet Seal Inc. filed for chapter 11 protection yesterday, becoming the fourth apparel retailer to file for bankruptcy in two months, as the sector struggles with growing competition and a slowdown in spending among teen shoppers, Reuters reported yesterday. Wet Seal said in its bankruptcy filing that it received $20 million in debtor-in-possession financing from B. Riley Financial Inc., and intends to reorganize its business around e-commerce and its remaining 173 stores. The company, which sells apparel and accessories for teen girls and young women, laid off 3,700 employees and closed 338 stores last week. Wet Seal listed assets of $10 million-$50 million and liabilities of $100 million-$500 million, and hired FTI Consulting Inc. as a restructuring advisor, according to the filing.
