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Article: Lost Bid Doesn't Faze Wet Seal Investors
- Article from:
- Orange County Business Journal
- Article date:
- February 27, 2006
- Author:
CopyrightCopyright CBJ, L. P. Feb 27-Mar 5, 2006. Provided by ProQuest LLC. (Hide copyright information)
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Wall Street doesn't seem to mind Wet Seal Inc.'s latest loss.
The Foothill Ranch-based teen retailer came up short two weeks ago in its bid to buy G+G Retail Inc., a bankrupt New York-based clothing chain.
Wet Seal initially offered $15.2 million for G+G's assets.
Vernon-based AZ3 Inc., known as BCBG Max Azria, swooped in with a more enticing offer: $15.2 million in cash and $22 million for the company's unsecured creditors in the next five years.
BCBG pledged to rehire more than half of G+G's staff and keep more stores open. Guggenheim Corporate Funding LLC provided some financial backing on the deal.
Analysts say Wet Seal doesn't need G+G to continue its turnaround.
"Even without G+G, Wet ...