Wet Seal Sold

Pending approval from the U.S. Bankruptcy Court in Delaware today, private equity firm Versa Capital Management LLC (Philadelphia) will take over Wet Seal (Foothill Ranch, Calif.) apparel stores and invest $10 million in the struggling company.

Versa was the winner at Wet Seal’s bankruptcy auction last Thursday. The firm says it will work with the retailer’s existing management team and take over at least 140 of the company’s 173 store leases, according to the Los Angeles Times.

Observers say the competitive nature of the auction bodes well for the future of the Wet Seal brand, noting that a pared-down version of the chain could survive. Wet Seal filed for Chapter 11 bankruptcy protection in January — a week after it closed two-thirds of its stores.