Case Summary: Wet Seal

Wet Seal

$15.0 million secured credit facility

Overview

Wet Seal is a multi-channel, mall-based specialty retailer focused on contemporary apparel for the teen and junior market. The Company filed for Chapter 11 bankruptcy protection in January 2015.

Purpose

At the March 2015 auction, Versa Capital was the winning bidder for the downsized chain. In conjunction with their DIP facility that would convert to equity upon emergence, stakeholders desired a senior debt solution to demonstrate stability.

Result

Crystal provided a $15.0 million senior secured emergence credit facility, consisting of a $10.0 million term loan and a $5.0 million revolver. Fundings provide the necessary working capital to operate the go forward store base and website.