Wet Seal gets $1.5 million lead bid for intellectual property assets

By Caroline Salls

Pittsburgh, Feb. 28 – Wet Seal, LLC entered a $1.5 million stalking horse bid agreement in connection with the proposed sale of its intellectual property, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The stalking horse bidder is WS 2017 LLC.

If WS 2017 is not the high bidder at the March 2 auction, Wet Seal will pay it a break-up fee of 3% of the purchase price and reimburse up to $50,000 of its sale-related expenses.

In addition to the cash purchase price, the stalking horse bidder agreed to assume liabilities related to the intellectual property assets.

Wet Seal, a Foothill Ranch, Calif., clothing retailer, filed bankruptcy on Feb. 2. The Chapter 11 case number is 17-10229.

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