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Wet Seal's Still Alive, But Facing New Challenges and a Lawsuit

Photo: Getty Images
Photo: Getty Images

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Times are tough for Wet Seal. In lieu of calling it quits on the whole business, the company has filed for bankruptcy in order to receive financial help and to attempt a return to stability after announcing the closure of over 300 stores nationwide.

As if that isn't bad enough, the consolidation process has been riddled with problems. Wet Seal allegedly gave its employees no more than a day's notice for layoffs in some areas, causing public protests in Seattle. After the protest went viral, Wet Seal fired those employees—even though they were already in the process of being laid off. To cap it all off, the retailer now has to answer to a class action lawsuit over its poor handling of store closures. The suit, filed in California, claims that Wet Seal violated a federal law by not giving employees adequate time to prepare for the layoffs.
· Wet Seal Hit With Class Action Over Store Closures [Law360]
· Wet Seal Is Closing 300+ Stores and Laying Off Thousands [Racked]
· Wet Seal Fired Employees Who Were Protesting Layoffs [Racked]