US-based teen retailer Wet Seal is to close down all of its stores.
On 20 January, the retailer issued a letter that notified its personnel about the closure of all the stores and the subsequent dismissal of employees.
The company has 148 employees working at its headquarters, and has 171 stores spread in 42 states.
The letter written by Wet Seal vice-president and general counsel Michelle Stocker read: "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."
Wet Seal had been looking at various options such as sale, restructuring or liquidation.
In 2015, the company filed for bankruptcy and was then acquired by Versa Capital Management for $7.5m in cash.
However, Wet Seal struggled to keep its business afloat due to poor sales and consequently had to close some stores, reported The Wall Street Journal.
Founded in Newport Beach, California, in 1962, Wet Seal initially began as a swimwear boutique, but later forayed into teen apparel.
Other apparel retailers such as Limited Stores and American Apparel had also to reduce staff count due to an increasingly competitive retail environment.
Image: Wet Seal headquarters in Foothill Ranch. Photo: courtesy of Coolcaesar via Wikipedia.