Breaking: Wet Seal files for bankruptcy

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Woe to the teen retailers we knew and loved. Wet Seal has followed right along in Delia's footsteps, announcing Friday that it has filed for Chapter 11 bankruptcy protection to seek legal protection from its creditors.

The news doesn't come as much of a surprise. Back in April, Wet Seal shut down its Arden B operations, and earlier this month, the mall retailer made public its plans to shutter 338 stores, resulting in the loss of 3,695 full and part-time jobs and leaving the company with 173 locations nationwide. Sales had been sinking, and in the third quarter of 2014, Wet Seal brought in nearly $11 million less than it had during the same period the year before.

In conjunction with its bankruptcy filing, Wet Seal has struck a deal with B. Riley Financial Inc. that could provide it with up to a $20 million loan to keep its business in operation. Pending court approval, the retailer is planning to continue making wage and salary payments to its employees, and honor customer programs like gift cards and returns on merchandise.

The company seems to be on its last legs. We'll see how these next few months play out.

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