American Apparel, Wet Seal closing remaining Twin Cities stores

American Apparel and Wet Seal spoke to different generations of young adults. But they are united in that they are among the latest wave of clothing stores to go under.

Both chains are closing their stores nationwide, including their remaining Twin Cities locations, in coming months as the retail industry continues to reel from changes in consumer behavior including the rise of online shopping, declining mall traffic, and shoppers' preference for fast-fashion concepts such as H&M, Forever 21 and Zara as well as off-price chains such as T.J. Maxx.

Wet Seal, the mall-based chain that used to be a popular destination for teen girls, is closing its last two Twin Cities stores — at the Mall of America and the Shoppes at Arbor Lakes in Maple Grove — as well as all of its 170 stores nationwide.

The stores started marking down everything 20 percent earlier this week as part of store-closing sales, according to employees at the two local stores. One employee said the stores would likely close in early March, but it depends on how fast the remaining merchandise is sold.

In addition to closing its stores, Wet Seal is also shutting down its California headquarters after it was unable to find a buyer, according to media reports. The company did not respond to a request for comment.

Wet Seal filed for bankruptcy two years ago and closed about 338 stores around that time including Twin Cities locations at Rosedale Center, Southdale Center, Maplewood Mall and Burnsville Center. But its sales have continued to decline.

Meanwhile, American Apparel, a more recent concept that launched in the early 2000s, has gone downhill amid various issues such as struggles over leadership of the company with its founder.

The company, which manufactured most of its clothes in the U.S., has also been weighed down by a mountain of debt from its rapid global expansion.

It filed for bankruptcy protection for the second time last year.

Its remaining 110 stores, including its two Twin Cities locations at the Mall of America and in Uptown Minneapolis, are expected to close in April. A store employee said Friday said store-closing sales have been going on for weeks and everything in the stores is now 40 percent off.

The downfall of Wet Seal and American Apparel come after a string of other apparel stores aimed at teens and young adults that have bitten the dust. The Limited shuttered all of its stores earlier this year.

And in 2015, Aeropostale and Pacific Sunwear filed for bankruptcy, but they still have some stores open.

Kavita Kumar • 612-673-4113