Us: Youth Clothing Brand Wet Seal Will Close Most Of The Physical Stores

Due to the high rent and weak customer demand, many young clothing brands including Wet Seal have been in trouble recently.

Amazon and other online retailers have also taken many customers through big discounts.

It was learned in the January 8th report that

Wet Seal said the company will close its physical stores, but online sales are still in progress.

Bloomberg said Wet Seal, a clothing retailer, said it had problems with its operations. Because of the high rent, they had closed about 2/3 of the physical stores and laid off 3700 people.

Wet Seal California headquarters Foothill Ranch said in a statement today (January 8th) that the closure of 338 entities meant that its 48% share of sales in nine months ended on November 1st.

After the closure of these stores, the number of shops running is about 173, including online shops.

The company's share price has risen, cutting costs may help the company through the difficult period.

As more and more shoppers tend to shop online and people are right.

Weaker demand, including several Wet Seal retailers, has encountered operational difficulties.

Dougherty & Co. analyst Jeremy Hamblin said, "the number of shops next to us should be more reasonable. I think these companies should reexamine their business models".

Apparel retailer Wet Seal ranked 416th in the 500 largest online retailer in 2014, while Delia, another apparel retailer, ranked 381st.

Last autumn, in order to revive online sales, Wet Seal returned to Jon Kubo, the former chief executive of the company.

Wet Seal said today that it was closed.

It will bring in clearance costs ranging from US $5 million 400 thousand to US $6 million 400 thousand, loss of assets and post reductions.

The company said that the valuation does not include compensation for the store.

The closing price of Wet Seal in NYSE doubled two times to 13 cents per share.

Last year, the company's valuation fell by 98 percentage points.