No. If the company has been losing money, it means the stores haven't been profitable, which means the operating costs have been more than the revenue. So if they can get rid of as much operating costs as they can while sustaining a maintainable number of stores, then they can start focusing their existing/cash credit on improving the remaining stores. In other words, cutting operating costs is way more important than trying to worry about decreasing trend of revenues. And by closing half their existing stores, they are reducing their operation costs greatly. They are still in business with their remaining stores and online presence. Now with less burden of maintenance, we can expect them to focus their time into devising a new business/marketing plan. Wet Seal is definitely shaping up to become a better business model, or even a buyout target. Either way, it's not going into bankruptcy like all the bashers are hoping for.
