Liquidator Gordon Brothers has confirmed to just-style it has acquired the Wet Seal brand with a bid of US$3m, following court approval of the transaction last week. 

According to an article published by Reuters, the firm fought off a $1.5m initial offer from Canadian retailer YM Inc to acquire the company.

Wet Seal filed for Chapter 11 bankruptcy for the second time in as many years last month. Based in Irvine, California, the teen apparel retailer listed assets of between $10m and $50m and liabilities of $50m to $100m, according to reports.

Teen retailer Wet Seal files for bankruptcy

Now, Gordon Brothers says the acquisition also includes other brands within the Wet Seal portfolio such as Arden B, Blink, Chic Boutique and several others.

"Despite the increasing challenges facing teen retailers, we at Gordon Brothers strongly believe in the long-term viability of the category," says Ramez Toubassy, president, brands. "Our plan for Wet Seal is to rebuild and re-position the brand and develop a unique new business model to best position it for future success." 

Gordon Brothers' brands business acquires, restructures and revives some of the world's most recognisable brands. Past investments include Polaroid, Bombay & Co. and Sharper Image.