Wet Seal closing 338 of its stores; nearly 3,700 full and part-time employees losing jobs

Markets Associated Press

Wet Seal is closing 338 stores, about two-thirds of its locations, resulting in nearly 3,700 full and part-time workers losing their jobs.

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The retailer said that it decided to proceed with the store closings after looking at its overall financial condition and because it wasn't able to negotiate meaningful concessions from landlords.

The closings are effective Wednesday.

The Wet Seal Inc. said that it estimates the stores closed represented about 48 percent of net sales for the nine months ended Nov. 1, 2014.

Wet Seal anticipates operating about 173 stores and its online business following the store closings.

The Foothill Ranch, California, company expects about $5.4 million to $6.4 million in charges related to the closings.