The teen retailer finds a new owner with a new vision.
Global advisory firm Gordon Brothers announced that it has acquired Wet Seal in a bankruptcy auction. Reuters reports the winning bid came in at $3 million, twice the initial offer from retailer YM Inc.
The transaction, which is pending court approval, also includes brands under the Wet Seal umbrella, including Adren B, Blink and Chic Boutique.
“Despite the increasing challenges facing teen retailers, we at Gordon Brothers strongly believe in the long-term viability of the category,” said Ramez Toubassy, Gordon Brothers president of brands. “Our plan for Wet Seal is to rebuild and reposition the brand and develop a unique new business model to best position it for future success.”
The company’s web site reads: “Thanks Babe, it’s been real.” The company says it’s “working on a new and improved Wet Seal” and that it’s on a “small (but necessary) break.”
In January, it was reported that the company planned to close all stores, and earlier this month, the chain filed for bankruptcy. This was the second Chapter 11 filing for the company. The first occurred in 2015, resulting in the retailer closing 338 stores and laying off 3,895 employees.
Wet Seal reported 2016 revenue of $144.5 million, according to the Orange County Business Journal.
YM Inc. operates 12 retail brands in Canada, including Suzy, Stitches and Urban Behavior, which offer trendy, budget-friendly fashion.
Gordon Brothers has a reputation for transforming consumer brands and has managed the wind down of Borders and repositioned Sharper Image from a retailer to a licensor.
Gerald Storch to exit Hudson's Bay Company November 1.Read more
The apparel industry shares how the so-called 'retail apocalypse' is providing opportunities and a crash course in what it takes to survive.Read more
Under Armour is jumping on the subscription box bandwagon and fulfilling the call for consumers who desire a monthly—or semi-monthly—activewear fix.Read more
Pakistan’s Punjab University has signed a memorandum of understanding to provide newly invented disease-resistant cotton seed to farmers in the country through seven multinational companies nationwide.Read more
FedEx Corp. has acquired Northwest Research Inc., a specialist in inventory research and management.Read more
Stitch Fix, which uses data analytics and personal stylists to offer curated apparel subscription boxes, has filed for an initial public offering.Read more
Rue21 named a new interim CEO and reorganized its board, while Céline's creative director is allegedly leaving the company.Read more