Jan. 29 (UPI) -- Wet Seal LLC, a retailer catered to teens, is closing all of its 171 stores in 42 states after it was unable to secure a new buyer or capital.
The retailer notified employees in its Irvine, Calif., headquarters that the office would be permanently closed.
"Unfortunately, the company was unable to obtain the necessary capital or identify a strategic partner, and was recently informed that it will receive no further financing for its operations," Vice President and General Counsel Michelle Stocker wrote in the letter, a copy of which The Wall Street Journal reviewed.
Wet Seal filed for bankruptcy protection in January 2015. Then, Versa acquired the company out of Chapter 11 for $7.5 million in cash. The company closed 338 of its stores and laid off nearly 3,700 employees, leaving just 173 locations and its website in operation two years ago.
Wet Seal was founded in Newport Beach, Calif., in 1962, as a swimwear boutique. But its operation grew as it added trendy teen apparel. Its stores in malls across the nation sported a California theme.
Other apparel retailers are also struggling.
The Limited closed the remainder of its approximately 200 brick-and-mortar stores Jan. 8.
Last November, American Apparel filed for bankruptcy for the second time and plans to sell locations.