April 6, 2018
The purchase grants the Versa affiliate all assets of the retailer, including its debtor-in-possession financing, subject to court approval and other conditions. Wet Seal filed for Chapter 11 bankruptcy in January. As of the filing, Wet Seal operated 173 stores in 42 states and Puerto Rico, as well as operated an e-commerce business.
"Versa Capital is pleased to have prevailed in our effort to acquire Wet Seal's business,” says Greg Segall, chairman and chief executive officer, Versa. “We have been assessing the dramatically shifting landscape in Wet Seal's category for more than a year and determined that Wet Seal, among the many companies we evaluated, was best positioned in the marketplace, and thus we pursued this deal with determination. We now look forward to working with CEO Ed Thomas andthe rest of the dedicated Wet Seal team to conclude the transaction and pursue the many opportunities for growth and profitability now available under Versa’s ownership."
“We believe our agreement with Versa provides the best possible outcome for our creditors, employees, customers and other constituents,” says Ed Thomas, CEO, Wet Seal. “We are focused on executing an orderly emergence from bankruptcy court supervision and collaborating with Versa to improve the operational and financial performance of the business.”
Versa Capital has more than $1.4 billion in assets with a portfolio that includes retailers such as Avenue Stores and Vestis (Bob’s Stores, Eastern Mountain Sports and Sport Chalet), as well as restaurants (Black Angus), community newspapers and manufacturers.
Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes, it’s completely free.