Wet Seal exits Arden B to focus on namesake brand

The Wet Seal Inc. has announced it is exiting its Arden B business to focus on its

namesake brand, Wet Seal, which caters for a younger audience.

As revealed by the apparel retailer earlier this month, the group plans to overhaul their current 54 Arden B stores to convert them to either Wet Seal flagship or Wet Seal Plus stores by late July.

Then, the company plans to close 31 of the stores by the end of its fiscal year 2015 and negotiate lease exits of the remaining stores, the company advanced in a note.

"This was a difficult decision that followed a comprehensive review of the business and market dynamics," said CEO John D. Goodman, who reminded that sales at Arden B stores opened at least a year, plunged 25 percent in the company's fourth quarter.

In the fiscal year ended Feb. 1, 2014, Arden B generated net sales of 60.4 million dollars and represented 11 percent of consolidated net sales.

With the shutdown of its struggling brand, the group plans to obtain annualised pre-tax cost savings of circa 1.3 million dollars beginning in the second quarter of fiscal 2014.

"With this process underway, our management team and Board of Directors will be focusing greater attention on our sweeping strategic initiatives, and this change positions us to take advantage of opportunities for growth within the Wet Seal brand," Goodman concluded.

"We are making progress against our strategic plan to enhance Wet Seal's product, merchandising, customer engagement and overall store performance, as well as drive growth in our e-commerce business. Importantly, our transition strategy for Arden B accelerates our opportunity to expand in the growing junior plus market," CEO of The Wet Seal Inc. added.