Some Retail Chains on Verge Of Bankruptcy After Poor Holiday Sales

Wet Seal

Image by Mike Mozart

At least three apparel chains — Wet Seal, Eastern Mountain Sports and Bob’s Stores — are running short of cash and on the verge of filing for bankruptcy protection, according to a New York Post report.

The report by Lisa Fickenscher and Josh Kosman also says outdoor retailer Gander Mountain — some of whose vendors stopped talking orders — have hired financial adviser Lazard.

A regulatory filing indicated Wet Seal — owned by Versa Capital, a private equity firm — reported a poor holiday made it impossible to obtain new financing.

“Over the last several weeks, Versa tried unsuccessfully to sell both EMS and Bob’s, sources said,” according to the Post‘s report.

Read the Post‘s article.

 

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