Wet Seal could be latest teen apparel bankruptcy as losses mount

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Fortune

It’s been a tough month for teen apparel retailers following recent bankruptcy filings by Deb Shops and Delia’s.

Those two chains could soon be joined by Wet Seal, another clothing store familiar to a generation of teen girls who frequented suburban shopping malls. The Foothill Ranch, Calif.-based Wet Seal said this week that it could also file for Chapter 11 bankruptcy protection if it cannot immediately address liquidity concerns made all the more apparent in the wake of yet another disappointing quarterly earnings report.

The company’s third-quarter losses more than doubled, to about $36 million or 43 cents a share, Wet Seal [fortune-stock symbol=”wtsl”] said on Wednesday. The company now has $19.1 million in cash and cash equivalents against $21.3 million in controvertible debt while its inventory declined by 26%, to $31.6 million, year-over-year.

In Wet Seal’s earnings release on Wednesday, the company reported that it has enlisted the help…

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