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Wet Seal Receives Default Notice From Creditor

Wet Seal Inc., the money-losing clothing chain that said last month there was substantial doubt it could continue operating, received a notice of default on $27 million in senior convertible notes.

The total amount due is equal to $28.8 million, plus costs of collection, attorneys’ fees and disbursements, Wet Seal said in a regulatory filing today. On Dec. 29, the company and its creditor -- Hudson Bay Master Fund Ltd. -- entered a forbearance agreement that lasts until Jan. 12, according to the filing, giving the retailer a two-week reprieve.