Wet Seal wins extension to pursue actions, determine plan prospects

By Caroline Salls

Pittsburgh, June 15 – Wet Seal, LLC received a fifth extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to an order filed June 14 with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company’s exclusive plan-filing period was extended through Aug. 2 from May 29 and the solicitation period through Oct. 2 from July 30.

Wet Seal said it sought the extension so that special counsel ASK LLP has sufficient time to prosecute avoidance actions and recover maximum proceeds and EY LLP may be afforded enough time to seek tax refunds from applicable taxing authorities.

The company said these efforts will allow it to determine the scope of future distributions and the prospect for a viable Chapter 11 plan.

Wet Seal, a Foothill Ranch, Calif., clothing retailer, filed for bankruptcy on Feb. 2, 2017. The Chapter 11 case number is 17-10229.

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