Wet Seal is reportedly closing all its stores

Wet Seal, whose teen-focused fashions were once emblematic of California cool, is planning to close all of its locations, according to a report.

Citing a letter dated Jan. 20, the Wall Street Journal says that Wet Seal vice president Michelle Stocker wrote that the retailer could not find the funding or partnership it needed, and “will receive no further financing for its operations.’’

Versa Capital, which owns the store chain, declined to comment. An inquiry to Wet Seal did not immediately receive a response.

The closing of Wet Seal’s 171 stores would come just two years after the Irvine, Calif.-based chain closed two-thirds of its locations and laid off almost 3,700 workers, filing for Chapter 11 bankruptcy protection. Its goals then were to retrench, focusing on its best performing storefronts while bolstering its online site.

American Apparel to lay off hundreds

With more than 3,000 workers on its payroll, Wet Seal had once been a retail star. Founded in Newport Beach, Calif., in 1962, it grew from a small swimwear destination to a popular, and profitable, store chain that mixed trendy, teen attire along with swimsuits. Wet Seal exported a California vibe to malls across the nation.

But like many other retailers, Wet Seal struggled in recent years as consumers bypassed malls and chose to do their shopping online. The chain also dealt with heightened competition from a growing array of fast fashion giants, like Zara and H & M, who were making a play for the same fashion-fickle, youthful crowd.

Greg Portell, lead partner in the retail practice for consulting firm A.T. Kearney, says the broader issues facing retailers like Wet Seal are "a group of consumers who are expecting faster, more responsive, apparel options.'' Even those that are adept at quickly filling their racks with the fashions of the moment "must have strong merchandising arms to anticipate and shape consumer preferences for styles.  Failure to do so results in mark-downs and missed earnings no matter how fast a retailer is."

The list of companies that are cutting jobs and shutting stores has been rapidly growing. Just this month, American Apparel, which filed for bankruptcy protection late last year, said it would lay off roughly 2,400 employees. The Limited, after closing all of its stores, filed for bankruptcy protection. Macy’s said it would shutter 68 stores, and Sears announced that it would be closing 150 locations and selling its signature Craftsman tool brand.