Ailing Wet Seal in financial review
Foothill Ranch. Calif. -Struggling teen apparel retailer Wet Seal has hired an investment banker and a senior adviser to analyze potential financial alternatives. Similar to other retailers in the teen sector, Wet Seal has faced up stepped-up competition from fast-fashion leaders such as Forever 21 and H&M.
The company said it has hired investment bank Houlihan Lokey and former Tilly's Inc. CFO William Langsdorf to aid in a strategic review. Wet Seal said it has not set a deadline for completion of the process and that “there can be no assurance that the exploration of the potential alternatives will result in a transaction.”
“I'm proud of the progress we have made to date in light of the ongoing difficult macro environment and state of affairs at the company when I joined in September,” CEO Ed Thomas stated. “Given our struggles and challenges, it is prudent for us to continue the review of alternatives. We welcome the addition of these advisors to our team."
In its last reported quarter, Wet Seal’s same-store sales fell 12.4%. Wet Seal operates 528 stores in 47 states and Puerto Rico.