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