Retailer Wet Seal files for Chapter 11 bankruptcy

Wet Seal Inc filed for bankruptcy protection late on Thursday, a week after the struggling apparel retailer laid off 3,700 employees and closed 338 stores.

The company listed assets of $10 million to $50 million and liabilities of $100 million to $500 million, according to the filing.

Wet Seal, which reported slowing year-on-year sales growth for the past five quarters, warned last month that it may seek to restructure under provisions of the U.S. Bankruptcy Code if it fails to address liquidity in the near term.

Wet Seal sells apparel and accessories for teen girls and young women through retail stores and an e-commerce website.

Many teen apparel retailers have been struggling as their customers' switch to fast-fashion brands such as H&M, Forever 21 and Inditex's Zara, which bring the latest styles from the runway to their stores within weeks.

Online retailers such as Amazon.com Inc have also been luring customers by offering deeper discounts.

Teen and young women's fashion chain Deb Shops, which is controlled by private equity firm Cerberus Capital Management, in December filed for its second bankruptcy in less than four years and said it would seek a buyer.

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