Wet Seal gets exclusivity extension to pursue actions, prepare plan

By Caroline Salls

Pittsburgh, June 8 – Wet Seal, LLC received an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company’s exclusive plan-filing period was extended through Aug. 31 from June 2 and the solicitation period through Oct. 30 from Aug. 1.

Since it filed for bankruptcy, the company said it has been focused on implementing store-closing sales, vacating retail properties, resolving a cash collateral objection and other issues.

“These demands on the debtors during the first four months of the Chapter 11 cases have occupied significant time and resources, and required substantial attention from the debtors’ respective retained professionals and limited remaining staff,” the motion said.

As a result, Wet Seal said it needs the extension to pursue avoidance actions and, ultimately, adequately prepare a viable Chapter 11 plan if the avoidance action proceeds position it to do so.

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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