Skip to main content

Wet Seal Wins Bankruptcy Court Approval for Sale to Versa

Submitted by Anonymous (not verified) on

Teen clothing retailer Wet Seal Inc. won court approval yesterday to be acquired by an affiliate of Versa Capital Management LLC in a deal that keeps at least 140 stores open, the Wall Street Journal reported today. Bankruptcy Judge Christopher Sontchi signed off on the sale, calling it an “excellent” outcome in a “challenging retailer environment.” Versa outbid B. Riley Financial Inc. for the Wet Seal business and will be paying $7.5 million in cash, holding on to some top managers and keeping many employees on board. The private-equity firm will also be absorbing many of Wet Seal’s liabilities.