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Wet Seal's Disasterous Downsizing

Having been in trouble for years and with its stock worth just pennies, once-hot teen retailer Wet Seal recently announced the immediate shuttering of 338 stores and laying off of 3,700 employees. But what’s unusual about Wet Seal’s story is the way the news was delivered to the public: by the employees themselves. So reports The Washington Post.

Just days before the retailer made the bad news official, signs began to appear in store windows in Ohio, Virginia and Washington state telling customers the stores were about to close and long-time staffers were being let go. What’s more, the posters listed employee grievances – that they were being given little or no notice; would not be receiving severance; and were not permitted by Wet Seal to look for other jobs.

Some signs were more extreme, noting that the company's new mission statement involves telling lies.

Not surprisingly, the signs went viral, but the company made no comment until it abruptly announced the store closings and firings days later. Wet Seal claims it plans to keep 173 stores and its online business running, but now faces a P.R. debacle on top of all its other woes.

Read the full article from The Washington Post.

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