Report: Versa Capital wins Wet Seal bankruptcy bid

Foothill Rach, Calif. – A winning bidder has reportedly emerged for the assets of The Wet Seal Inc., which declared bankruptcy in January 2015. According to the Wall Street Journal, Versa Capital Management LLC will take over at least 140 store leases and invest $10 million in the specialty apparel chain.



Versa beat out B. Riley Financial Inc., which had agreed to pay $25 million for 80% of Wet Seal’s equity. However, Versa won the auction with a deal including $7.5 million in cash slated for unsecured creditors, an agreement to cover various costs and claims, $10 million in exit financing, and agreement to assume a $20 million bankruptcy financing commitment from B. Riley and pay B. Riley a $625,000 breakup fee. For the time being, Wet Seal’s management will stay in place.