Wet Seal, the mall retailer owned by Versa Capital Management, is considering a sale or bankruptcy after struggling to turn around the business, Bloomberg News reported on Friday. A decision could come as soon as this week. If Wet Seal decides instead on a bankruptcy, it would be the second in two years for the chain, which caters to women and girls ages 13 to 24. During its previous chapter 11 in 2015, the company sold its assets to Versa in a deal that included $7.5 million in cash. Wet Seal has already closed hundreds of stores, but sluggish mall traffic has continued to weigh on the chain’s remaining locations. In early 2015, Versa’s Mador Lending LLC won an auction for the Wet Seal’s inventory and some leases. As part of the deal, it provided $20 million in replacement bankruptcy financing and assumed certain liabilities. The Irvine, Calif.-based retailer has 171 locations in 42 states, according to its website.
