Ian Ritter is national online editor for GlobeSt.com/RETAIL.

FOOTHILL RANCH, CA-Teen apparel retailer Wet Seal will close about 150 stores as part of its restructuring plan, leaving it with approximately 400 units. The locally based company hopes to shut the stores by the end of February and will lay off about 2,000 employees.

"While a difficult to decision to make, it is necessary for the Wet Seal, Inc. to reduce its cost structure and focus on those stores that can deliver the best performance as we implement our new merchandise strategy," says Joe Deckop, Wet Seal's interim chief executive officer.

The announcement comes after months of speculation that the retailer would close stores and/or file for Chapter 11 bankruptcy protection. During its Q3, the company posted a loss of $24.6 million and same-store sales dropped by 12.6% from the same period a year ago.