Wet Seal said its store closing sales netted a little more than $15 million across its 177 stores and online shop.
The sales of fixtures and furniture at its headquarters and the majority of stores brought in an additional $606,956 to the teen retailer, according to court documents filed this week.
How much the store closing sales would generate for the company had been an issue in the company’s bankruptcy case when the group pushed back in February on the company’s use of its cash collateral. The creditors had been monitoring the liquidation of the retailer’s stores, warning of possible insolvency on the basis that the store sales at the time were not generating enough funds to cover what unsecured creditors were owed in addition to about $6.08 million in administrative fees the group said had not been accounted for.
Wet Seal began holding store closing sales in late January ahead of the company’s February bankruptcy filing after an unsuccessful attempt to find a new source of capital to fund its continued operations.
The company entertained bids, including $1.5 million offered by Canada-based multibrand portfolio owner YM Inc., which owns West 49, Stitches and Urban Planet among other lines of business. The intellectual property was ultimately sold to the brands division of Gordon Brothers for $3 million.
Wet Seal’s bankruptcy filing followed its January 2015 attempt at a Chapter 11 restructuring after which it was acquired by private equity firm Versa Capital.
The brand’s new owners told WWD in March it saw opportunity in building out the wholesale business for the brand in department stores or mass channels in addition to raising the possibility of a possible comeback of Wet Seal-branded stores. The company in more recent weeks has begun teasing followers on its Instagram and website of a comeback for the brand promising a new Wet Seal.
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