County Seat Inc. said a proposal by Wet Seal Inc. to buy 508 of its casual clothing stores is "grossly inadequate" and that it will proceed with its bankruptcy reorganization. The retail chain declined to disclose details of Wet Seal's offer. Sam Forman, president and chief executive of Dallas-based County Seat, said the company's creditors share its view of the proposal. County Seat filed for Chapter 11 protection in U.S. Bankruptcy Court in Delaware on Oct. 17, saying it planned to shut 200 of its 740 stores, which mainly are in shopping malls. With the acquisition, Irvine-based Wet Seal would have increased its young women's clothing stores to about 900 and expanded its base in malls. Wet Seal shares lost $1.25 to close at $19.625 on Nasdaq.
Times Staff and Wire Reports
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