Apparel retailer Wet Seal Inc has hired restructuring lawyers to help it with a potential bankruptcy filing, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The company has hired Klee, Tuchin, Bogdanoff & Stern LLP, according to the report. (on.wsj.com/1xWEmNK)
Citing one of the sources, the newspaper reported that a bankruptcy filing could be made next week.
Wet Seal and Klee, Tuchin, Bogdanoff & Stern LLP were not immediately available for comment after regular business hours.
Wet Seal said on Wednesday that it laid off about 3,700 full- and part-time employees as it closed 338 stores.
Wet Seal sells apparel and accessories for teen girls and young women through retail stores and an e-commerce website.
Several teen apparel retailers have been losing market share. Delia*s warned on Friday that it was liquidating assets and would file for Chapter 11 bankruptcy protection "in the very near term."
Teen and young women's fashion chain Deb Shops, which is controlled by private equity firm Cerberus Capital Management[CBS.UL], on Thursday filed for its second bankruptcy in less than four years and said it would seek a buyer.
