It’s no secret that the teen clothing retailer Wet Seal has been struggling to compete with similar retailers for quite some time and now the company has decided to shutter 338 stores.
Reuters noted that the company said that nearly 3,700 employees were laid off as a result of the closures.
The Associated Press reported that the closings went into effect Wednesday. The company will still operate 173 retail stores as well as its online stores.
"This was a very difficult decision to make, but after reviewing many other options since I returned to the company in September, our financial condition leaves us no other alternative than to close these stores," CEO Ed Thomas said in a statement.
Thomas had previously served as president from 2007 to 2011.
The company, which was founded in 1962, has seen sales tumble due to the competition of many other fashion retailers that cater to teens and young woman including H&M and Forever 21.
Wet Seal is based out of California.