Pursuits

Wet Seal Said to Consider Sale or Bankruptcy as Business Falters

  • A bankruptcy would be the second in two years for teen chain
  • Investment firm Versa Capital acquired the brand in 2015
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Wet Seal, the mall retailer owned by Versa Capital Management, is considering a sale or bankruptcy after struggling to turn around the business, according to people with knowledge of the situation.

A decision could come as soon as next week, said the people, who asked not to be identified because the matter isn’t public. The company would prefer an out-of-court deal, according to the people.