The Wet Seal Inc. (Foothill Ranch, Calif.) has announced that it is planning to sell or close all of its 31 Zutopia stores, the model aimed at the pre-teen audience. If a buyer is not found, all stores will be closed by the end of the first quarter fiscal 2004.
Zutopia divisional president Jennifer Pritchard has been named president of the company's Arden B. division, replacing Greg Scott, who has resigned.
“Jennifer has made a significant contribution to the company since she joined in September 2002,” said Wet Seal ceo Peter Whitford. “Her depth of experience in specialty retailing and her success in building a merchant-led organization will help us continue to build the Arden B. brand.” Prior to joining Wet Seal, Pritchard had held senior merchandising positions with Urban Outfitters and The Limited.
“We believe these strategic initiatives . . . are vital to our long-term goal of returning this company to a successful and profitable fashion retailer,” added Whitford. “As the Zutopia stores continued to struggle in this highly competitive pre-teen market, the board felt our efforts and resources would be better directed toward a more streamlined focus on our core strengths in the teen and better/juniors categories.”
The company said it expects to record an approximate $5.5 million pre-tax non-cash charge in the fourth quarter, reflecting the write down of fixed assets at the Zutopia stores to their estimated fair value.
Wet Seal currently operates 621 stores in 47 states, D.C. and Puerto Rico, including 485 Wet Seal and Contempo Casual stores for teen and junior women and 105 Arden B. stores for the more upscale 18-40 market.