Wet Seal Shareholders OK Investment Deal

Wet Seal Inc. said shareholders approved a $56-million investment deal that was expected to help the teen retailer stave off bankruptcy.

Shareholder ownership of the Foothill Ranch company would be reduced to 32.9% from 76.4% if all notes are converted, warrants are fully exercised and 10 million shares of Class A common stock are issued under the new stock incentive plan.

Wet Seal’s shares rose 6 cents to $2.02 on Nasdaq.

Leslie Earnest