NEW YORK – Versa Capital Management says that it is the winning bidder in the auction of troubled teen clothing retailer Wet Seal, which filed for Chapter 11 bankruptcy two months ago.
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Versa's bid will be presented Wednesday in the United States Bankruptcy Court for the District of Delaware for approval.
The retailer had initially arranged a $20 million term loan facility through B. Riley Financial Inc. to help it keep paying its vendors and landlords.
Versa is a private equity firm with a portfolio that includes restaurants such as Black Angus Steakhouses and retailers including Avenue Stores and Vestis.
In January, Wet Seal abruptly closed two-thirds of its stores and filed for bankruptcy a week later.