Foothill Ranch, Calif., Wet Seal Inc. announced on Thursday it offered to buy the assets of G+G Retail Inc. out of bankruptcy for $15.2 million. The company said the purchase offer will be affected in G+G’s bankruptcy proceeding that same day.
In connection with the deal, an affiliate of Prentice Capital Management LP, a principal investor in Wet Seal, has committed too provide G+G with debtor-in-possession financing to enable the retailer to continue to operate through the closing date of the acquisition.
G+G operates 566 stores in the United States and Puerto Rico under the names of Rave, Rave Girl and G+G. Wet Seal expects to operate 450 under those names, but reserves the right to reject additional leases under the bankruptcy code.