NEW YORK--Wet Seal completed the purchase of the 237-unit Contempo Casuals chain from the Neiman Marcus Group Inc. for $1 million of Wet Seal Class A common stock.
Under the terms of the agreement, Wet Seal purchased certain assets of Contempo and assumed operating leases and other liabilities.
"We will continue to operate Contempo Casuals as a separate entity under its own name," said Kathy Bronstein, vice chairman and chief executive officer of Wet Seal. "We are excited about the potential of both chains heading into the back-to-school season."
Contempo Casuals posted an operating loss of $1.5 million in the third quarter ended April 29. In its year ended July 1994 Contempo lost $37 million on sales of $303 million.
In the first quarter ended April 30, Wet Seal widened its loss to $671,000 from $662,000 a year ago. Sales slid 1.2 percent to $29.8 million and same-store sales dropped 6.7 percent.
Wet Seal, based in Irvine, Calif., operates 133 young women's apparel stores in 13 states.

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