Jump to Navigation

Another teen clothing retailer may file for Chapter 11 bankruptcy

During the holidays, most New Jersey businesses are having their highest revenue months of the year. While most businesses are prospering, others, especially those focused on teen fashion, are failing to see increased sales. Changes in teen shopping habits have resulted in several retailers filing for Chapter 11 bankruptcy, and the trend seems to be continuing. 

Another teen clothing retailer may be joining the others who recently announced bankruptcy filings. Wet Seal has stated that if its liquidity issues are not resolved very soon, the company will go forward with filing for bankruptcy. Like the other teen clothiers, Wet Seal is having a difficult time keeping up with more fashion-forward competition. This has caused to company to seek the aid of outside advisers.

Wet Seal's stock has been slowly dropping in value and was last reported at 18 cents per share. During the fourth quarter, the company is projecting to close 60 of its 528 stores, resulting in the elimination of a great number of jobs. The stores expected to close are comprised of 44 Wet Seal locations, as well as 16 other locations that are part of the company's other retail outlet, Arden B.

New Jersey businesses that are struggling financially may find a ray of hope in filing for Chapter 11 bankruptcy. Bankruptcy can allow a company to reorganize its structure, eliminating aspects that are not prosperous.  The company can also become more attractive to a prospective buyer who may be able to help the business get back on its feet. With the help of the court, a business may emerge from bankruptcy in a better financial position and be set up for a more successful future.

Source: ocregister.com, "Teen clothing retailer Wet Seal warns of possible bankruptcy", Lily Leung, Dec. 11, 2014

No Comments

Leave a comment
Comment Information

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe to This Blog's Feed Visit Our
Bankruptcy Law Website

Office Location

Law Office of Robert Braverman, LLC

South Jersey
1060 North Kings Highway, Suite 333
Cherry Hill, NJ 08034
Phone: 856-254-2196 
Toll Free: 800-759-0767
Fax: 856-414-1230
Map & Directions

Willingboro Area Office
Law Office of Robert Braverman, LLC

1848 Burlington Mount Holly Rd (Route 541)
Mount Holly, NJ 08060
Phone: 856-254-2196
Toll Free: 800-759-0767
Willingboro Area Office

Center City, Philadelphia
15th Floor
1515 Market Street
Philadelphia, PA 19102
Map & Directions

Northeast Philadelphia
7909 Bustleton Avenue
Philadelphia, PA 19152
Map & Directions

FindLaw Network