Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Wet Seal laying off staff, closing stores without warning

(BUSINESS NEWS) Without filing for a second bankruptcy, Wet Seal announces they will be closing all of their stores.

wet seal

Throwback Thursday

If you were anything like my girlfriends and I in the late 90s and early 2000’s, shopping at Wet Seal was a rite of passage. But, as shopping malls decrease in popularity while online shopping has increased, brick and mortar stores have suffered the consequences.

Wet Seal now finds itself in this suffering as it was announced this week that the retailer will be closing all of its stores. According to The Wall Street Journal, the company notified employees within their Irvine, California headquarters that the office would be closing its doors.

Buyout did not save

With this, all of Wet Seal’s employees are now being laid off. This comes after 3,700 employees were let go in 2015 after the company filed for bankruptcy. It was acquired in April of 2015 by Versa Capital for $7.5 million; however, Versa could not raise funding or find a buyer for Wet Seal to continue.

During the first bankruptcy, 338 of their 511 stores closed before they filed for bankruptcy protection. A second bankruptcy has not recently been filed.

The latest closing trend

The closing of many once-popular stores within shopping malls has become a trend as less and less people spend their time and money at malls. We’ve seen department stores such as Sears and Macy’s struggle to stay in business, while other retailers continue to find themselves on the chopping block.


Advertisement. Scroll to continue reading.

Staff Writer, Taylor Leddin is a publicist and freelance writer for a number of national outlets. She was featured on Thrive Global as a successful woman in journalism, and is the editor-in-chief of The Tidbit. Taylor resides in Chicago and has a Bachelor in Communication Studies from Illinois State University.



  1. Pingback: Wet Seal is no more - are malls becoming ghost towns? - The American Genius

  2. Pingback: Gymboree is the most recent retail domino to fall - The American Genius

Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Business News

The Federal Trade Commission is looking into reviving an old law about pricing, and it sounds like their first target might be the Pepsi...

Business News

Retail sales rose in October and fell in November - possibly December too. What made the Great Pumpkin pop?

Tech News

(TECHNOLOGY) The Metaverse has been the talk of the town for quite some time now, but how it will affect retail as we know...

Business News

(NEWS) Toys R Us is opening their newest store complete with a 2-story slide and ice cream parlor, as well as an exclusive partnership...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.