Wet Seal Loss Quadruples

The recorded financial report showed that the company's sales dropped to $110.8 million in the third quarter, down from $131.8 million in last year's third quarter, along with a 12.6% decline in comparable store sales. The company closed four Wet Seal stores during the third quarter, dropping the total number of stores for continuing operations at quarter's end to 558 versus 590 a year ago.

The quarterly financial results marked the latest in a series of setbacks for Wet Seal, which in the past few months has lost key executives and has scrambled to line up new financing. Early in November the company announced an agreement with a group of investors led by S.A.C. Capital Associates LLC to provide up to $55.8 million in new financing, a deal that is subject to shareholder approval in a vote that is expected early next year. The same group of investors has provided a $10 million term loan to Wet Seal as bridge financing to be repaid at the end of February, and Wet Seal has enlisted Michael Gold, owner of more than 400 retail clothing outlets in Canada and the US, including the Suzy Shier and Stitches chains, as a merchandising consultant. Executives that have left the company recently include Allan D. Haims, president of Wet Seal stores, who resigned in late November after the announcement of the financing deal with S.A.C. Capital, and the resignation earlier in November of Peter D. Whitford, chairman and CEO, who joined the company in July "to help guide the company through difficult times," according to a Wet Seal announcement at the time.

The Wet Seal Inc. operates 559 retail locations in 47 states, the District of Columbia and Puerto Rico, including 463 Wet Seal stores and 96 Arden B. stores.