0001193125-15-076783.txt : 20150304 0001193125-15-076783.hdr.sgml : 20150304 20150304160633 ACCESSION NUMBER: 0001193125-15-076783 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20150302 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20150304 DATE AS OF CHANGE: 20150304 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WET SEAL INC CENTRAL INDEX KEY: 0000863456 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-WOMEN'S CLOTHING STORES [5621] IRS NUMBER: 330415940 STATE OF INCORPORATION: DE FISCAL YEAR END: 0128 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35634 FILM NUMBER: 15673446 BUSINESS ADDRESS: STREET 1: 26972 BURBANK CITY: FOOTHILL RANCH STATE: CA ZIP: 92610 BUSINESS PHONE: 7145839029 MAIL ADDRESS: STREET 1: 26972 BURBANK CITY: FOOTHILL RANCH STATE: CA ZIP: 92610 8-K 1 d882743d8k.htm FORM 8-K Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 8–K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (d)

OF THESECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): March 2, 2015

 

 

THE WET SEAL, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   001-35634   33-0415940

(State or Other Jurisdiction

of Incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

26972 Burbank

Foothill Ranch, CA 92610

(Address of principal executive offices; zip code)

Registrant’s telephone number, including area code:

(949) 699-3900

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 2.02. Results of Operations and Financial Condition.

As previously disclosed in a Current Report on Form 8-K filed by The Wet Seal, Inc. (the “Company”) on January 16, 2015 and in a Current Report on Form 8-K filed by the Company on January 22, 2015 (collectively, the “Prior Form 8-Ks”), on January 15, 2015, the Company and its three subsidiaries (collectively with the Company, the “Debtors”) filed voluntary petitions in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) seeking relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). The Chapter 11 cases are being administered under the caption “In re The Wet Seal, Inc., et al.”, Case Nos. 15-10081-10084 (the “Chapter 11 Cases”).

On March 2, 2015, the Debtors filed their monthly operating report for the period of January 15, 2015 through January 31, 2015 (the “Monthly Operating Report”) with the Bankruptcy Court. The Monthly Operating Report is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Cautionary Statement Regarding the Monthly Operating Report

The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Report which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Company. The Monthly Operating Report is limited in scope, covers limited time periods, and has been prepared solely for the purpose of complying with the monthly reporting requirements of the Bankruptcy Court. The Monthly Operating Report was not audited or reviewed by independent accountants, was not prepared in accordance with U.S. generally accepted accounting principles, is in a format prescribed by applicable bankruptcy laws, and is subject to future adjustment and reconciliation. There can be no assurance that, from the perspective of an investor or potential investor in the Company’s securities, the Monthly Operating Report is complete. The Monthly Operating Report also contains information for periods which are shorter and otherwise different from those required in the Company’s periodic reports pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and such information might not be indicative of the Company’s financial condition or operating results for a period that would be reflected in the Company’s financial statements or in its reports pursuant to the Exchange Act. Information set forth in the Monthly Operating Report should not be viewed as indicative of future results.

Cautionary Statement Regarding Forward-Looking Statements

This Current Report on Form 8-K and Exhibit 99.1 hereto contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projections as well as the current beliefs and assumptions of the Company’s management. Forward-looking statements may be identified by words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “predict,” “will,” “would,” “could,” “should,” “target” and similar expressions. All statements contained in this Current Report that are not statements of historical fact and other estimates, projections, future trends and the outcome of events that have not yet occurred referenced in this Form 8-K should be considered forward-looking statements. All forward-looking statements made by the Company are predictions and not guarantees of future performance, involve material risks and uncertainties and are subject to change based on factors that are difficult to predict and that may be beyond the Company’s control. Such factors include, but are not limited to, those described under the “Risk Factors” section and elsewhere in the Company’s most recent Quarterly Report on Form 10-Q filed with the Securities Exchange Commission on December 10, 2014 as well as in other past filings with the Securities and Exchange Commission and include risks and uncertainties relating to the bankruptcy filing by the Company, including but not limited to, (i) the Company’s ability to obtain Bankruptcy Court approval with respect to motions in the Chapter 11 Cases, (ii) the effects of the Company’s bankruptcy filing on the Company and on the interests of various constituents, (iii) Bankruptcy Court rulings in the Chapter 11 Cases and the outcome of the cases in general, (iv) the length of time the Company will operate under the Chapter 11 Cases, (v) risks associated with third party motions in the Chapter 11 Cases, (vi) the potential adverse effects of the Chapter 11 Cases on the Company’s liquidity or results of operations, (vii) the Company’s ability to execute its business while in bankruptcy, and (viii) increased legal costs to execute the Company’s reorganization, and other risks and uncertainties, as well as in other past filings with the Securities and Exchange Commission. The Company will not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The Company cautions that trading in the Company’s securities during the pendency of the Chapter 11 Cases is highly speculative and poses substantial risks.

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

The Exhibit Index appearing after the signature page to this Current Report on Form 8-K is incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

THE WET SEAL, INC.

(Registrant)

Date: March 4, 2015 By:

/s/ Thomas R. Hillebrandt

Name: Thomas R. Hillebrandt
Title: Interim Chief Financial Officer

EXHIBIT INDEX

 

EXHIBIT
NUMBER

   

DESCRIPTION

99.1    Monthly Operating Report for the period of January 15, 2015 through January 31, 2015, as filed with the United States Bankruptcy Court for the District of Delaware on March 2, 2015.
 EX-99.1 2 d882743dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

In re The Wet Seal, Inc., et al. Case No. 15-10081 (CSS)
Reporting Period: 1/15/2015 to 1/31/2015

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month.

Submit copy of report to any official committee appointed in the case.

 

REQUIRED DOCUMENTS

    Form No.    Document
Attached		    Explanation
Attached		    Affidavit/Supplement
Attached

Schedule of Cash Receipts and Disbursements

    MOR-1    x      

Schedule of Bank Accounts with Book Balances

    MOR-1a    x      

Bank Reconciliation (or copies of debtor’s bank reconciliations)

    MOR-1b       x   

Schedule of Professional Fees Paid

    MOR-1c    x      

Copies of bank statements

            

Cash disbursements journals

            

Statement of Operations

    MOR-2    x      

Balance Sheet

    MOR-3    x      

Status of Postpetition Taxes

    MOR-4    x      

Copies of IRS Form 6123 or payment receipt

            

Copies of tax returns filed during reporting period

            

Summary of Unpaid Postpetition Debts

    MOR-4    x      

Listing of aged accounts payable

    MOR-4    x      

Debtor Questionnaire

    MOR-5    x      

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

 

   

 

    

 

Signature of Debtor Date
    

 

    

 

Signature of Joint Debtor Date
LOGO March 2, 2015

 

    

 

Signature of Authorized Individual* Date
Thomas R. Hillebrandt Interim Chief Financial Officer

 

    

 

Printed Name of Authorized Individual Title of Authorized Individual

 

* Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

In re The Wet Seal, Inc., et al. Case No. 15-10081 (CSS)
Reporting Period: 1/15/2015 to 1/31/2015

 

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

FOR THE PERIOD JANUARY 15 to JANUARY 31, 2015

(In thousands)

Unaudited

MOR -1

 

     WS Inc.     WS Retail     WS Catalog      WS Gift card      Total company  

Receipts:

             
   $ —        $ 1,724      $ 430       $ —         $ 2,154   

Cash and checks

    $ —        $ 1,244      $ —         $ —         $ 1,244   

Less: Fees

    $ —        $ (20 )    $ —         $ —         $ (20 ) 

Credit card

    $ —        $ 1,724      $ 430       $ —         $ 2,154   

Other

    $ 12      $ —        $ —         $ —         $ 12   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total receipts

 $ 12    $ 2,949    $ 430    $ —      $ 3,391   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Cash Disbursements

Advertising

 $ 24    $ —      $ 1    $ —      $ 25   

Benefits/Medical

 $ 243    $ 102    $ 2    $ —      $ 347   

Freight out

 $ —      $ 8    $ —      $ —      $ 8   

Merchandise

 $ —      $ 3,268    $ —      $ —      $ 3,268   

Other

 $ 1,582    $ 133    $ 1    $ —      $ 1,716   

Payroll

 $ 696    $ 1,155    $ 34    $ —      $ 1,884   

Property tax

 $ —      $ 24    $ —      $ —      $ 24   

Rent

 $ 86    $ 3,776    $ —      $ —      $ 3,862   

Sales tax

 $ (1 )  $ 2,673    $ 6    $ —      $ 2,678   

Temp help

 $ 9    $ 7    $ 11    $ —      $ 27   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total disbursements

 $ 2,639    $ 11,146    $ 54    $ —      $ 13,840   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

    
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Net Operating Cash Flow

 $ (2,628 )  $ (8,197 )  $ 376    $ —      $ (10,449 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Non-operating disbursements

Deposits

 $ 1,500    $ —      $ —      $ —      $ 1,500   

Letter of credit

 $ —      $ 6,000    $ —      $ —      $ 6,000   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total Non-operating disbursements

 $ 1,500    $ 6,000    $ —      $ —      $ 7,500   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Net Cash Flow

 $ (4,128 )  $ (14,197 )  $ 376    $ —      $ (17,949 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Disbursements for calculating US Trustee Quarterly Fees:

Total disbursements

 $ 4,139    $ 17,146    $ 54    $ —      $ 21,340   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

    
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

US Trustee Fees*

 $ 10    $ 20    $ 0    $ —      $ 30   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

 

* US Trustee fees reflected in the table above are subject to chage as disbursements by debtor reflect only one month of the quarter

In re The Wet Seal, Inc., et al. Case No. 15-10081 (CSS)
Reporting Period: 1/15/2015 to 1/31/2015

 

Schedule of Bank Accounts with Book Balances

 

Bank Account

   CONSOLIDATED     WS INC(Co 01)     WS RETAIL(Co 02)     WS INTERNET(Co 03)     WS GC(Co 04)  

11101 Cash On Hand

     108,850        2,000        106,850        —          —     

11201 Cash - B of A Main (0086)

     11,203,122        11,203,122        —          —          —     

11202 Cash - B of A A/P Expense Checks

     (213,760 )      (213,760 )      —          —          —     

11203 Cash - B of A A/P Merch Checks

     (393,943 )      (393,943 )      —          —          —     

11204 Cash - B of A A/P Expense (Retail)

     (3,551,469 )      —          (3,551,469 )      —          —     

11209 Cash - B of A (6096)

     48,793        —          48,793        —          —     

11211 American Express

     151,854        —          151,854        —          —     

11212 American Express - Internet

     3,527        —          —          3,527        —     

11213 Debit Card

     382,745        —          382,745        —          —     

11214 Cash - Wet Seal Inc Concentration (6128)

     126,475        126,475        —          —          —     

11217 M/C & Visa

     301,261        —          301,261        —          —     

11218 M/C & Visa - Internet

     50,494        —          —          50,494        —     

11219 Discover

     22,418        —          22,418        —          —     

11220 Discover - Internet

     1,671        —          —          1,671        —     

11221 Amazon Pay Phrase

     5,105        —          —          5,105        —     

11222 Amazon Retail

     4,304        —          —          4,304        —     

11223 ECA Checks

     1,055        —          1,055        —          —     

11224 Cash - BofA Payroll-WS1“Retail”

     38,303        —          38,303        —          —     

11225 Cash - BofA Payroll-WS2“Inc”

     255,300        255,300        —          —          —     

11227 Cash - Wells Fargo (2375)

     62,575        —          62,575        —          —     

11228 Cash - UMB (9215)

     4,731        —          4,731        —          —     

11229 Cash - Bank Of Hawaii (7696)

     4,215        —          4,215        —          —     

11230 Cash - ADP Refund Payroll Checks

     (542 )      —          (542 )      —          —     

11234 Cash - Southbank (0928)

     5,466        —          5,466        —          —     

11235 Cash - B of A (5505)

     23,335        —          23,335        —          —     

11240 Cash - Capital One (3024)

     8,512        —          8,512        —          —     

11241 Cash - Tri Counties Bank (4372)

     508        —          508        —          —     

11242 Cash - MB Financial (3400)

     5,932        —          5,932        —          —     

11245 Cash - IBC Bank (4224)

     21,145        —          21,145        —          —     

11255 Cash - TD Bank (5953)

     1,230        —          1,230        —          —     

11256 Cash - First Financial (2801)

     166        —          166        —          —     

11260 Cash - Citizens Bank & Trust (8685)

     124        —          124        —          —     

11261 Cash - Compass (3082)

     7,141        —          7,141        —          —     

11264 Cash - Canandaigua Bank (6124)

     185        —          185        —          —     

11268 Cash - Wells Fargo (7711)

     10,077        —          10,077        —          —     

11270 Cash - First Citizens (7493)

     4,017        —          4,017        —          —     

11271 Cash - PNC (3713)

     10,418        —          10,418        —          —     

11273 Cash - BofA - Nations (5143)

     86,271        —          86,271        —          —     

11278 Cash - Citibank- Cigna Dental

     3,983        3,983        —          —          —     

11280 Cash - PayPal

     16,658        16,658        —          —          —     

11282 Cash - M & T /Wilmington (2422)

     4,732        —          4,732        —          —     

11286 Cash - Citibank (4202)

     4,756        —          4,756        —          —     

11288 Cash - Wheatland Bank (2722)

     2,522        —          2,522        —          —     

11290 Cash - Fidelity (4364)

     187        —          187        —          —     

11292 Cash - Eastern Bank (1173)

     226        —          226        —          —     

11293 Cash - Citizens Bank of Florida (9439)

     127        —          127        —          —     

11294 Cash - American Savings (1847)

     3,148        —          3,148        —          —     

11295 Cash - Arvest (6134)

     219        —          219        —          —     

11296 Cash - Asheville Savings (1488)

     119        —          119        —          —     

11298 Cash - Prosperity Bank (3019)

     2,991        —          2,991        —          —     

11305 Cash - B of A Flex Ben (3869)

     91        —          91        —          —     

11306 Cash - B of A LC (5600)

     14,769        —          14,769        —          —     

11401 Cash - Metro Bank (2331)

     106        —          106        —          —     

11403 Cash - Commerce (1282)

     4,344        —          4,344        —          —     

11404 Cash - CoreFirst Bank (1670)

     3,147        —          3,147        —          —     

11406 Cash - Central State (3180)

     189        —          189        —          —     

11407 Cash - Central Pacific Bank (0497)

     171        —          171        —          —     

11410 Cash - MainSource (8985)

     4,496        —          4,496        —          —     

11412 Cash - Banco Popular (2034)

     3,404        —          3,404        —          —     

11415 Cash - Bank Champaign (2168)

     542        —          542        —          —     

11416 Cash - Bank Plus (2621)

     176        —          176        —          —     

11440 Cash - JPM Chase (5732)

     39,383        —          39,383        —          —     

11448 Cash - Bristol County Savings (3031)

     106        —          106        —          —     

11450 Cash - BB & T (4524)

     1,263        —          1,263        —          —     

11451 Cash - Bristol County Savings (3031)

     307        —          307        —          —     

11462 Cash - Centrue Bank (2379)

     304        —          304        —          —     

11464 Cash - First Financial Bank (0953)

     178        —          178        —          —     

11465 Cash - First Commonwealth (8971)

     181        —          181        —          —     

11466 Cash - Prosperity (0562)

     172        —          172        —          —     

11468 Cash - First Niagara (2865)

     444        —          444        —          —     

11477 Cash - Citibank (9462)

     6,631        —          6,631        —          —     

11483 Cash - Cole Taylor (6577)

     4,594        —          4,594        —          —     

11487 Cash - US Bank (6180)

     24,212        —          24,212        —          —     

11493 Cash - First Place (6590)

     198        —          198        —          —     

11494 Cash - Frost National (2394)

     176        —          176        —          —     

11495 Cash - Comerica (5247)

     5,245        —          5,245        —          —     

11505 Cash - Bremer (1137)

     (678 )      —          (678 )      —          —     

11508 Cash - NBT Bank (0419)

     177        —          177        —          —     

11537 Cash - First National - Utah (8801)

     154        —          154        —          —     

11538 Cash - First Sentry (2195)

     3,051        —          3,051        —          —     

11539 Cash - First National of Burleson (7881)

     102        —          102        —          —     

11570 Cash - Plains Commerce (3268)

     2,630        —          2,630        —          —     

11571 Cash - PNC (5029)

     18,118        —          18,118        —          —     

11573 Cash - Huntington National (0721)

     2,302        —          2,302        —          —     

11577 Cash - 5/3 Bank (4021)

     5,054        —          5,054        —          —     

11581 Cash - Key Bank (7205)

     6,629        —          6,629        —          —     

11599 Cash - BMO Harris (9030)

     783        —          783        —          —     

11602 Cash - Pennstar Bank (1641)

     126        —          126        —          —     

11603 Cash - People’s United (2442)

     120        —          120        —          —     

11604 Cash - Pioneer Natl of Duluth (5500)

     181        —          181        —          —     

11605 Cash - Sovereign (6840)

     2,674        —          2,674        —          —     

11606 Cash - Sovereign (7956)

     7,644        —          7,644        —          —     

11607 Cash - B of A - La Salle (5141)

     10,171        —          10,171        —          —     

11609 Cash - Citizens (2501)

     5,908        —          5,908        —          —     

11634 Cash - Sun National (8134)

     397        —          397        —          —     

11635 Cash - Suntrust (7978)

     13,112        —          13,112        —          —     

11651 Cash - BofA Inv (Cash/Cash Eq)

     5,070,454        5,070,454        —          —          —     

11652 Cash - UBS Money Market

     100,037        100,037        —          —          —     

11664 Cash - Salem Five (1098)

     2,511        —          2,511        —          —     

11669 Cash - First American (4601)

     1,116        —          1,116        —          —     

11675 Cash - Bank Financial (3903)

     5,154        —          5,154        —          —     

11684 Cash - Regions (4895)

     33,952        —          33,952        —          —     

11686 Cash - Umpqua (1802)

     379        —          379        —          —     

11687 Cash - Valley National Bank (9151)

     2,347        —          2,347        —          —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  14,250,713      16,170,326      (1,984,714 )    65,101      —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

In re The Wet Seal, Inc., et al.   Case No. 15-10081 (CSS)
  Reporting Period: 1/15/2015 to 1/31/2015

 

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

This schedule is to include all retained professional payments from case inception to current month.

 

                    Check    Amount Paid    Year-To-Date

Payee

    Period Covered    Amount Approved    Payor    Number    Date    Fees    Expenses    Fees    Expenses

None paid for the reporting period.

                        
                          

In re The Wet Seal, Inc., et al. Case No. 15-10081 (CSS)
Reporting Period: 1/15/2015 to 1/31/2015

 

MOR - 2
Debtor Income Statement-By Entity
For the Month Ended January 31, 2015
(In thousands)

 

           01     02     03      04  
     CONSOLIDATED     WS INC(Co 01)     WS RETAIL(Co 02)     WS INTERNET(Co 03)      WS GC(Co 04)  

Unaudited

    Actual     Actual     Actual     Actual      Actual  

Sales

      5,409        —          4,948        461         —     

Cost of Sales

      2,222        —          2,096        125         —     

Buying

      194        194        —          —           —     

Planning/Allocation

      53        53        —          —           —     

Warehouse

      171        —          171        —           —     

Occupancy

      1,840        —          1,840        —           —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Cost of Sales

   4,479      247      4,107      125      —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Gross Profit

   930      (247 )    841      336      —     

Gross Profit (Retail)

   3,187      —        2,852      336      —     

S,G & A

Selling-Store Expense

   3,136      —        2,898      230      7   

Selling-Field Support

   208      —        208      —        —     

Gen & Admin Expense

   2,813      2,716      29      67      —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total S,G&A Expenses

   6,157      2,716      3,136      297      7   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Operating (Loss) Income

   (5,227 )    (2,963 )    (2,295 )    38      (7 ) 

Interest Exp , Net

   (98 )    (98 )    —        —        —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

(Loss) Inc Cont Ops B4 Tax

   (5,325 )    (3,061 )    (2,295 )    38      (7 ) 

Inc Tax Provision

   31      31      —        —        —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

(Loss) Inc from Cont Ops

   (5,356 )    (3,092 )    (2,295 )    38      (7 ) 

Net Inc (Loss) Disc Ops

   —        —        —        —        —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net (Loss) Inc-CS

   (5,356 )    (3,092 )    (2,295 )    38      (7 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

In re The Wet Seal, Inc., et al. Case No. 15-10081 (CSS)
Reporting Period: 1/15/2015 to 1/31/2015

 

MOR - 3
Balance Sheet-By Entity-Condensed
January 31, 2015

 

          01     02     03     04  
    CONSOLIDATED     WS INC(Co 01)     WS RETAIL(Co 02)     WS INTERNET(Co 03)     WS GC(Co 04)  
    Actual     Actual     Actual     Actual     Actual  

Assets

          

Current Assets:

          

Cash And Cash Equivalents

     14,250,713        16,170,326        (1,984,714 )      65,101        0   

Other Receivables

     5,627,631        4,906,596        695,847        0        25,188   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Merchandise Inventories

   8,926,848      0      7,574,189      1,352,659      0   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Prepaid Expenses

   8,009,811      3,471,397      4,538,414      0      0   

Total Current Assets

   36,815,003      24,548,319      10,823,736      1,417,760      25,188   

Equipment And Leasehold Improvements:

Leasehold Improvements

   24,119,807      2,812,955      21,289,201      17,651      0   

Furniture, Fixtures And Equipment

   39,727,770      20,883,844      15,619,419      3,224,507      0   

Construction In Progress

   1,682,744      895,547      787,197      0      0   

Less Accumulated Depreciation

   (44,472,026 )    (19,219,394 )    (23,033,571 )    (2,219,061 )    0   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Equipment And Leasehold Improvements

   21,058,295      5,372,952      14,662,246      1,023,097      0   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other Assets:

Other Assets and CEO Retirement Plan

   1,914,360      1,706,157      206,203      2,000      0   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Other Assets

   1,914,360      1,706,157      206,203      2,000      0   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Assets

   59,787,658      31,627,428      25,692,185      2,442,857      25,188   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Liabilities And Stockholders’ (Deficit) Equity

Current Liabilities:

Accounts Payable-Merchandise

Subject to compromise

   8,019,127      0      6,014,345      2,004,782      0   

Not subject to compromise

   544,260      0      408,195      136,065      0   

Accounts Payable

Subject to compromise

   7,710,166      169,886      7,254,082      286,198      0   

Not subject to compromise

   2,465,200      1,175,499      1,137,708      138,026      13,967   

Accrued Liabilities

Subject to compromise

   3,119,302      78,661      3,040,641      0      0   

Not subject to compromise

   13,725,330      1,126,925      9,000,150      273,644      3,324,611   

S-T Portion of Notes/Warrants/Derivatives

   15,765,185      15,765,185      0      0      0   

Unamortized Debt Discount - Current

   (2,352,897 )    (2,352,897 )    0      0      0   

Short-Term Deferred Rent

   1,317,292      0      1,317,292      0      0   

Intercompany AP/AR - NET

   1      193,500,202      (132,640,247 )    (69,215,453 )    8,355,499   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Current Liabilities

   50,312,966      209,463,461      (104,467,834 )    (66,376,738 )    11,694,077   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Long Term Liabilities:

Convertible Notes - Long Term

   13,150,000      13,150,000      0      0      0   

Unamortized Debt Discount - Long-Term

   (1,211,025 )    (1,211,025 )    0      0      0   

Deferred Rent

   11,011,490      0      11,011,490      0      0   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Long Term Liabilities

   22,950,465      11,938,975      11,011,490      0      0   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Liabilities

   73,263,431      221,402,436      (93,456,344 )    (66,376,738 )    11,694,077   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Stockholders’ (Deficit) Equity:

Common Stock

   8,459,234      8,459,234      0      0      0   

Paid-In Capital

   218,818,803      218,818,803      0      0      0   

Retained Earnings

   (157,863,950 )    (370,728,421 )    159,068,328      64,916,244      (11,120,101 ) 

Current Period Earnings

   (82,834,240 )    (46,269,004 )    (39,919,799 )    3,903,351      (548,788 ) 

Less Cost Of Treasury Stock

   (55,620 )    (55,620 )    0      0      0   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Stockholders’ (Deficit) Equity

   (13,475,773 )    (189,775,008 )    119,148,529      68,819,595      (11,668,889 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Liabilities And Stockholders’ Equity

   59,787,658      31,627,428      25,692,185      2,442,857      25,188   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

In re The Wet Seal, Inc., et al. Case No. 15-10081 (CSS)
Reporting Period: 1/15/2015 to 1/31/2015

 

STATUS OF POSTPETITION TAXES

The Wet Seal, Inc.

 

     Beginning
Tax
Liability		      Amount
Withheld or
Accrued		      Amount
Paid		      Ending
Tax
Liability		  

Federal

            

Withholding

      —           204,293         204,293         —     

FICA-Employee

      —           127,339         127,339         —     

FICA-Employer

      —           127,339         127,339         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Federal Taxes

   —        458,972      458,972      —     
  

 

 

     

 

 

     

 

 

     

 

 

  

State and Local

Withholding

   —        67,743      67,743      —     

Sales

   —        244,752      176,920      67,832   

Unemployment

   —        7,155      7,155      —     

Income

   —        30,945      —        30,945   

Personal Property

   —        12,427      —        12,427   

Total State and Local

   —        363,022      251,818      111,204   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Taxes

   —        821,994      710,790      111,204   
  

 

 

     

 

 

     

 

 

     

 

 

  

SUMMARY OF UNPAID POSTPETITION DEBTS

The Wet Seal, Inc.

 

     Number of Days Past Due  
     Current      0-30      31-60      61-90      Over 90      Total  

Accounts Payable

      1,511,145         —                    1,511,145   

Wages Payable

      680,825         —                    680,825   

Taxes Payable

      111,204         —                    111,204   

Rent/Leases-Building

      —           2,043,204                  2,043,204   

Professional Fees

      1,051,815         —                    1,051,815   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Postpetition Debts

   3,354,989      2,043,204      —        —        —        5,398,193   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

In re The Wet Seal, Inc., et al.   Case No. 15-10081 (CSS)
  Reporting Period: 1/15/2015 to 1/31/2015

 

DEBTOR QUESTIONNAIRE

 

Must be completed each month

   

Yes

   

No

1.      

    Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.       X

2.      

    Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.       X

3.      

    Have all postpetition tax returns been timely filed? If no, provide an explanation below.    X   

4.      

    Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.    X   

5.      

    Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been provide the required documentation pursuant to the Delaware Local Rule 4001-3.       X
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