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Chapter 11 last resort, says Wet Seal

To the Editor:

The Wet Seal, Inc., takes issue with an article published by ICSC’s SCT Newswire titled “Wet Seal May File for Chapter 11” (June 29, 2004).

This article grossly misrepresents the company’s financial position and our future growth prospects. The company believes that new and unique fashion at the Wet Seal division this fall will signal the beginning of our turnaround. We are fully confident that the strategies we have put in place over the past few months will lead to a successful future for this brand.

While it is no secret that the Wet Seal division has been struggling to gain traction with its core teen customer base, we also operate the successful, 96-store Arden B. chain. We are in a strong financial position, having recently completed a private equity placement, which raised approximately $25.9 million for the company, and have no debt on our balance sheet.

The risk language used in our 10-Q filing with the Securities and Exchange Commission is common for a company in a turnaround situation and in no way reflects an imminent filing.

I can assure your readers and our landlords that a reorganization under Chapter 11 is a last-resort option for The Wet Seal, Inc.

Peter D. Whitford

SCT welcomes letters to the editor. These may be mailed to ICSC, Attention SCT, Letters to the Editor, 1221 Avenue of the Americas, New York, NY 10020-1099; e-mailed to emander@icsc.org; or faxed to (212) 589-5530.