Versa top bidder for bankrupt Wet Seal

NEW YORK — Versa Capital Management said that it is the winning bidder in the auction of troubled teen clothing retailer Wet Seal, which filed for Chapter 11 bankruptcy two months ago.

Versa’s bid will be presented for approval Wednesday in the U.S. Bankruptcy Court for the District of Delaware.

Versa is a private equity firm with a portfolio that includes restaurants such as Black Angus Steakhouses and retailers including Avenue Stores and Vestis.

“We believe our agreement with Versa provides the best possible outcome for our creditors, employees, customers and other constituents,” Wet Seal CEO Ed Thomas said in a statement.

Wet Seal closed two-thirds of its stores in January and filed for bankruptcy. The company and many of its peers, including Delia’s Inc. and Deb Stores, have faced competitive pressure from stores like H&M and Forever 21.

Wet Seal had estimated its assets to be between $10 million and $50 million, according to its bankruptcy filing, with liabilities between $100 million and $500 million.

— Bloomberg News