Private equity firm Versa Capital Management wins auction for troubled retailer Wet Seal

MarketsAssociated Press

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.

Versa's bid will be presented Wednesday in the United States Bankruptcy Court for the District of Delaware for approval.

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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.