Wet Seal has been going downhill recently with news that it has dropped from $4 per share in February to $0.06 as of this morning. The sales have declined for 11 of the past 12 quarters. The company has $19.1 million in cash and cash equivalents against $21.3 million in controvertible debt while its inventory declined by 26%, to $31.6 million. They have lost over 97% of their total worth in the past year. They are headed for bankruptcy, and closing down their stores country-wide. What has outraged the nation is that Wet Seal employees, including managers of the stores, were given a days notice that all products were being liquidated and sold off.
The employees are reportedly not being paid for unused sick days, nor do they have severance. Employees that have worked for more than 10 years were suddenly let go and forced to look for a new job. What outrages them more is that the Central Financial Officer got a $95,000 raise from a base salary of $255,000 to $350,000. We’re thinking that they don’t want the interim CFO to jump ship when he was just recently hired a year ago, after the previous CFO of 9 years quit.
The outrage first hit reddit a day ago, and it has appeared on all manners of social media. The hashtags #ForgetWetSeal, #BoycottWetSeal, and #ClubWetSeal have all taken off on twitter and Instagram.
Here are some of the reactions from former employees, expressed on Wet Seal’s instagram account:
With the employees enforcing their free will of speech, they have brought up the injustice that Wet Seal has inflicted upon them:
- Unused vacation time & sick time unpaid (In some states, this is not against the law)
- One day’s notice to find new jobs
- No transfers to open stores
- CFO recieves a $95,000 raise while 2000 people have been laid off
These banners have been posted in stores nationwide:
What do you think of the recent Wet Seal situation?
Republished by Blog Post Promoter