The Wet Seal Inc., which sells fashions for young women, has filed for Chapter 11 bankruptcy protection. The company hopes to keep operating during the bankruptcy process. It currently operates 173 stores in 42 states and Puerto Rico. The retailer said that it has arranged a $20 million term loan facility that will give it the opportunity to fund its operations including paying its vendors and other providers of goods and services. That still needs to be approved by the U.S. Bankruptcy Court for the District of Delaware. A plan sponsorship agreement with B. Riley Financial Inc. allows for the firm to receive a majority of Wet Seal’s stock once the retailer reorganizes and exits bankruptcy protection.
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