Some Retail Chains on Verge Of Bankruptcy After Poor Holiday Sales
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.