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Wet Seal Files for Bankruptcy to Stay Afloat

The Wet Seal Inc., a teen clothing retailer, has filed for Chapter 11 bankruptcy protection in an effort to keep its remaining stores open.

The announcement Friday comes a little over a week after the chain said that it was closing 338 stores, or about two-thirds of its total.

Wet Seal had warned last month that it might need to file for bankruptcy protection if it did not resolve its cash issues after reporting another quarter of losses.

Wet Seal hopes to keep operating during bankruptcy. The Foothill Ranch, California-based company was running 173 stores in 42 states and Puerto Rico as of Thursday.

-- The Associated Press