Wet Seal's Mega Mindfuck Campaign

Kernel Konductor

Kernel Konductor

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If you've been on reddit today you've probably seen some shit from Wet Seal. They're closing like 25% of their stores, and at some of the closing locations employees have put up signs bitching about how they were screwed over. The only problem, all the signs are almost identical.

I think this is a genius marketing campaign on Wet Seal's part. No publicity is bad publicity right?

Exposing the Wet Seal Publicity Stunt
 
How is the additional negative publicity a good thing? They just received a default notice from their creditors, which will cost them $28.8MM: http://www.bloomberg.com/news/2015-...notice-on-27-million-in-notes.html?cmpid=yhoo

The have 2 weeks until they have to pay that - And here is their stock:
Screen_Shot_2015_01_05_at_11_13_55_PM.png


Where is the genius behind this? The company didn't just "suddenly" start dying, it's been declining for 11 of the last 12 quarters.

The company has lost more than $150 million in the last two years. In its third quarter, Wet Seal reported a loss of $36 million, compared with a loss of $12.5 million in the same quarter a year earlier.
Click to expand...

The company has been in the toilet for nearly 3 years? Do you believe there is actually going to be a sales spike that's going to resurrect a company that is that far gone? If this is indeed a publicity stunt - I am failing to see how the marketing team thought this was going to "work" out - what's the end goal? Sales - doubtful, but even a spike for 1-3 weeks - how will that undo 3 years of loss? That won't change the factors of poor management and a stock at 0.06, and in default to it's creditors of $28.8MM.

That blog author's stretching for something - but out of reach.
 
It's weird that they'd push out that poster like a press-release though. Maybe it was an inside job by upset managers or something. It's obviously purposeful, but WHY is the question. Thanks for the share.

I will say that bad publicity can be bad and counter effective though. I don't believe all publicity is good
 
Wet Seal follow up:

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The closing of Wet Seal’s 171 stores would come just two years after the Irvine, Calif.-based chain closed two-thirds of its locations and laid off almost 3,700 workers, filing for Chapter 11 bankruptcy protection. Its goals then were to retrench, focusing on its best performing storefronts while bolstering its online site.

With more than 3,000 workers on its payroll, Wet Seal had once been a retail star.

[..]

The list of companies that are cutting jobs and shutting stores has been rapidly growing. Just this month, American Apparel, which filed for bankruptcy protection late last year, said it would lay off roughly 2,400 employees. The Limited, after closing all of its stores, filed for bankruptcy protection. Macy’s said it would shutter 68 stores, and Sears announced that it would be closing 150 locations and selling its signature Craftsman tool brand.

Source: Wet Seal is reportedly closing all its stores​

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The move to online (online shopping) has been one of the biggest disruptions to American jobs for all sectors.
 
Some of 2016/17...

Bankruptcy:

Wet Seal
American Apperal
Sears
XM
RadioShack
Nasty Girl
Hhgregg Inc.
Toshiba's Westinghouse
Gordmans
Gander Mountain (160 stores)
MC Sports (66 stores)
Avaya (Telecommunications company)
ITT Educational Services Inc. (135 schools)
Limited (250 stores)
Bauer (hockey gear) and Easton (baseball equipment)
Golfsmith International Holdings Inc. (109 stores)
Caesars Entertainment Corp
Luke's Locker (3 stores)
Barwood Taxi Service
Sigel's Beverages (10 stores)
DirectBuy
Cosí Inc: (Logan’s Roadhouse, Fox & Hound, Champps, Bailey’s, Old Country Buffet, HomeTown Buffet, Ryan’s, Johnny Carino’s, Quaker Steak & Lube, Zio’s Italian Kitchen, Black-eyed Pea and, of course, Cosí.)

Others:

Payless (considering closing 1,000 stores)
J.C. Penny (140 stores)
Ringling brothers circus (Closing)
 
BTW if anyone wants to buy the site/e-comm/trademarks, the stuff is up for bidding in the bankruptcy court.
 
Amazon's winning.. wonder why lol they offer all those stores offer..... with a few clicks at home
 
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