| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers W > Headlines for Wet Seal, LLC > News item |
Wet Seal gets interim OK of store-closing sales, cash collateral use
By Caroline Salls
Pittsburgh, Feb. 3 – The Wet Seal, LLC received interim court approval to hold closing sales at its stores, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, Wet Seal intends to wind down its operations and implement a liquidation strategy that began before the bankruptcy filing date.
The liquidation strategy will be implemented primarily through going-out-of-business sales at the company’s retail locations and corresponding discounts offered on its website.
Specifically, Wet Seal entered into an agreement with a contractual joint venture comprised of Hilco Merchant Resources, LLC and Gordon Brothers Retail Partners, LLC to conduct the store-closing sales at all of its retail locations. Those sales began on Jan. 23 and are expected to end by Feb. 28.
Under the consultant agreement, the joint venture will receive a fee of 1˝% of the gross proceeds from the closing sales, as well as a fee equal to 20% of the gross proceeds from the sale of any “additional consultant goods.”
Wet Seal was also granted interim access to the cash collateral of its pre-bankruptcy secured parties. The cash collateral will be used to fund the company’s operations while in Chapter 11 and to conduct the store-closing sales.
Under the cash collateral order, the company is authorized to use the cash collateral from the bankruptcy filing date through the earliest to occur of a termination declaration date, 11:59 p.m. ET on March 10 and the March 11 closing date.
The final hearing on both motions is scheduled for Feb. 22.
Wet Seal, a Foothill Ranch, Calif., clothing retailer, filed bankruptcy on Feb. 2. The Chapter 11 case number is 17-10229.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.