COUNTY SEAT’S CREDITORS SCORN WET SEAL OFFER
NEW YORK — County Seat Inc.’s unsecured creditors’ committee rejected a revised proposal by Wet Seal Inc. to acquire the bankrupt retailer, calling the proposal “grossly inadequate.”
Concerned that reports in the marketplace might be undermining County Seat’s restructuring, the committee said it has terminated discussions with Wet Seal, which said Friday that it would no longer pursue its bid to buy County Seat.
Wet Seal made a bid for the 500-unit County Seat in December. The terms were not disclosed.
Wet Seal had planned to convert the denim-driven stores into Wet Seal or Contempo Casual units, lifting its store count close to 900.
While dropping the acquisition bid, Wet Seal said it will continue to pursue a strong growth strategy.
It aims to open 30 stores this year and another 75 in 1998.
Wet Seal has 364 stores in 34 states and Puerto Rico.
County Seat, which filed for Chapter 11 protection in October, said it is working on a restructuring plan of its own.