Wet Seal is closing after over five decades of being in business. The Newport Beach-born fashion retailer is one of many other longstanding retailers that have lost ground in recent years as new fast-fashion brands and internet shopping take hold.
Familiar names – PacSun, Quiksilver, and American Apparel – have fallen into bankruptcy with some reorganizing into leaner, private operations.
• Anaheim-based Pacific Sunwear of California’s reorganization plan was approved in September. PacSun gave its stock to affiliates of private equity firm Golden Gate Capital, its senior lender.
• Huntington Beach-based Quiksilver filed for Chapter 11 bankruptcy protection in September 2015. In October of that year, the company received court approval for a $175 million financing package with Oaktree Capital Management, which now holds a controlling interest in the company.
• Aeropostale Inc. filed for bankruptcy in May. A group of buyers led by mall operators Simon Property Group Inc. and General Growth Properties Inc. announced in 2016 they would keep at least 229 of Aeropostale’s locations open. There were approximately 800 Aeropostale stores before it filed for bankruptcy protection.
• Earlier this month The Limited filed for bankruptcy after closing down its 250 stores and shuttering its website. The company entered into an asset purchase agreement with an affiliate of private equity company Sycamore Partners. Sycamore will acquire the company’s assets and intellectual property.
• American Apparel has started mass layoffs as it shutters stores. The brand filed for bankruptcy twice in just over a year. Canadian clothing manufacturer Gildan Activewear is buying the company for $88 million.
