Seal123 (WTSL) 8-K Results of Operations and Financial Condition

Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

In re The Wet Seal, Inc.,etal.	Case No. 15-10081 (CSS)
	Reporting Period: 1/15/2015 to 1/31/2015

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month.

Submit copy of report to any official committee appointed in the case.

REQUIRED DOCUMENTS	Form No.	Document Attached	Explanation Attached	Affidavit/Supplement Attached
Schedule of Cash Receipts and Disbursements	MOR-1	x
Schedule of Bank Accounts with Book Balances	MOR-1a	x
Bank Reconciliation (or copies of debtor’s bank reconciliations)	MOR-1b		x
Schedule of Professional Fees Paid	MOR-1c	x
Copies of bank statements
Cash disbursements journals
Statement of Operations	MOR-2	x
Balance Sheet	MOR-3	x
Status of Postpetition Taxes	MOR-4	x
Copies of IRS Form 6123 or payment receipt
Copies of tax returns filed during reporting period
Summary of Unpaid Postpetition Debts	MOR-4	x
Listing of aged accounts payable	MOR-4	x
Debtor Questionnaire	MOR-5	x

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

Signature of Debtor	Date
Signature of Joint Debtor	Date
	March 2, 2015
Signature of Authorized Individual*	Date
Thomas R. Hillebrandt	Interim Chief Financial Officer
Printed Name of Authorized Individual	Title of Authorized Individual

* Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

In re The Wet Seal, Inc.,etal.	Case No. 15-10081 (CSS)
	Reporting Period: 1/15/2015 to 1/31/2015

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

FOR THE PERIOD JANUARY 15 to JANUARY 31, 2015

(In thousands)

Unaudited

MOR -1

	WS Inc.			WS Retail			WS Catalog		WS Gift card		Total company
Receipts:
	$	—		$	1,724		$	430	$	—	$	2,154
Cash and checks	$	—		$	1,244		$	—	$	—	$	1,244
Less: Fees	$	—		$	(20	)	$	—	$	—	$	(20	)
Credit card	$	—		$	1,724		$	430	$	—	$	2,154
Other	$	12		$	—		$	—	$	—	$	12
Total receipts	$	12		$	2,949		$	430	$	—	$	3,391
Cash Disbursements
Advertising	$	24		$	—		$	1	$	—	$	25
Benefits/Medical	$	243		$	102		$	2	$	—	$	347
Freight out	$	—		$	8		$	—	$	—	$	8
Merchandise	$	—		$	3,268		$	—	$	—	$	3,268
Other	$	1,582		$	133		$	1	$	—	$	1,716
Payroll	$	696		$	1,155		$	34	$	—	$	1,884
Property tax	$	—		$	24		$	—	$	—	$	24
Rent	$	86		$	3,776		$	—	$	—	$	3,862
Sales tax	$	(1	)	$	2,673		$	6	$	—	$	2,678
Temp help	$	9		$	7		$	11	$	—	$	27
Total disbursements	$	2,639		$	11,146		$	54	$	—	$	13,840
Net Operating Cash Flow	$	(2,628	)	$	(8,197	)	$	376	$	—	$	(10,449	)
Non-operating disbursements
Deposits	$	1,500		$	—		$	—	$	—	$	1,500
Letter of credit	$	—		$	6,000		$	—	$	—	$	6,000
Total Non-operating disbursements	$	1,500		$	6,000		$	—	$	—	$	7,500
Net Cash Flow	$	(4,128	)	$	(14,197	)	$	376	$	—	$	(17,949	)
Disbursements for calculating US Trustee Quarterly Fees:
Total disbursements	$	4,139		$	17,146		$	54	$	—	$	21,340
US Trustee Fees*	$	10		$	20		$	0	$	—	$	30

* US Trustee fees reflected in the table above are subject to chage as disbursements by debtor reflect only one month of the quarter

In re The Wet Seal, Inc.,etal.	Case No. 15-10081 (CSS)
	Reporting Period: 1/15/2015 to 1/31/2015

Schedule of Bank Accounts with Book Balances

Bank Account	CONSOLIDATED			WS INC(Co 01)			WS RETAIL(Co 02)			WS INTERNET(Co 03)		WS GC(Co 04)
11101 Cash On Hand		108,850			2,000			106,850			—		—
11201 Cash - B of A Main (0086)		11,203,122			11,203,122			—			—		—
11202 Cash - B of A A/P Expense Checks		(213,760	)		(213,760	)		—			—		—
11203 Cash - B of A A/P Merch Checks		(393,943	)		(393,943	)		—			—		—
11204 Cash - B of A A/P Expense (Retail)		(3,551,469	)		—			(3,551,469	)		—		—
11209 Cash - B of A (6096)		48,793			—			48,793			—		—
11211 American Express		151,854			—			151,854			—		—
11212 American Express - Internet		3,527			—			—			3,527		—
11213 Debit Card		382,745			—			382,745			—		—
11214 Cash - Wet Seal Inc Concentration (6128)		126,475			126,475			—			—		—
11217 M/C & Visa		301,261			—			301,261			—		—
11218 M/C & Visa - Internet		50,494			—			—			50,494		—
11219 Discover		22,418			—			22,418			—		—
11220 Discover - Internet		1,671			—			—			1,671		—
11221 Amazon Pay Phrase		5,105			—			—			5,105		—
11222 Amazon Retail		4,304			—			—			4,304		—
11223 ECA Checks		1,055			—			1,055			—		—
11224 Cash - BofA Payroll-WS1“Retail”		38,303			—			38,303			—		—
11225 Cash - BofA Payroll-WS2“Inc”		255,300			255,300			—			—		—
11227 Cash - Wells Fargo (2375)		62,575			—			62,575			—		—
11228 Cash - UMB (9215)		4,731			—			4,731			—		—
11229 Cash - Bank Of Hawaii (7696)		4,215			—			4,215			—		—
11230 Cash - ADP Refund Payroll Checks		(542	)		—			(542	)		—		—
11234 Cash - Southbank (0928)		5,466			—			5,466			—		—
11235 Cash - B of A (5505)		23,335			—			23,335			—		—
11240 Cash - Capital One (3024)		8,512			—			8,512			—		—
11241 Cash - Tri Counties Bank (4372)		508			—			508			—		—
11242 Cash - MB Financial (3400)		5,932			—			5,932			—		—
11245 Cash - IBC Bank (4224)		21,145			—			21,145			—		—
11255 Cash - TD Bank (5953)		1,230			—			1,230			—		—
11256 Cash - First Financial (2801)		166			—			166			—		—
11260 Cash - Citizens Bank & Trust (8685)		124			—			124			—		—
11261 Cash - Compass (3082)		7,141			—			7,141			—		—
11264 Cash - Canandaigua Bank (6124)		185			—			185			—		—
11268 Cash - Wells Fargo (7711)		10,077			—			10,077			—		—
11270 Cash - First Citizens (7493)		4,017			—			4,017			—		—
11271 Cash - PNC (3713)		10,418			—			10,418			—		—
11273 Cash - BofA - Nations (5143)		86,271			—			86,271			—		—
11278 Cash - Citibank- Cigna Dental		3,983			3,983			—			—		—
11280 Cash - PayPal		16,658			16,658			—			—		—
11282 Cash - M & T /Wilmington (2422)		4,732			—			4,732			—		—
11286 Cash - Citibank (4202)		4,756			—			4,756			—		—
11288 Cash - Wheatland Bank (2722)		2,522			—			2,522			—		—
11290 Cash - Fidelity (4364)		187			—			187			—		—
11292 Cash - Eastern Bank (1173)		226			—			226			—		—
11293 Cash - Citizens Bank of Florida (9439)		127			—			127			—		—
11294 Cash - American Savings (1847)		3,148			—			3,148			—		—
11295 Cash - Arvest (6134)		219			—			219			—		—
11296 Cash - Asheville Savings (1488)		119			—			119			—		—
11298 Cash - Prosperity Bank (3019)		2,991			—			2,991			—		—
11305 Cash - B of A Flex Ben (3869)		91			—			91			—		—
11306 Cash - B of A LC (5600)		14,769			—			14,769			—		—
11401 Cash - Metro Bank (2331)		106			—			106			—		—
11403 Cash - Commerce (1282)		4,344			—			4,344			—		—
11404 Cash - CoreFirst Bank (1670)		3,147			—			3,147			—		—
11406 Cash - Central State (3180)		189			—			189			—		—
11407 Cash - Central Pacific Bank (0497)		171			—			171			—		—
11410 Cash - MainSource (8985)		4,496			—			4,496			—		—
11412 Cash - Banco Popular (2034)		3,404			—			3,404			—		—
11415 Cash - Bank Champaign (2168)		542			—			542			—		—
11416 Cash - Bank Plus (2621)		176			—			176			—		—
11440 Cash - JPM Chase (5732)		39,383			—			39,383			—		—
11448 Cash - Bristol County Savings (3031)		106			—			106			—		—
11450 Cash - BB & T (4524)		1,263			—			1,263			—		—
11451 Cash - Bristol County Savings (3031)		307			—			307			—		—
11462 Cash - Centrue Bank (2379)		304			—			304			—		—
11464 Cash - First Financial Bank (0953)		178			—			178			—		—
11465 Cash - First Commonwealth (8971)		181			—			181			—		—
11466 Cash - Prosperity (0562)		172			—			172			—		—
11468 Cash - First Niagara (2865)		444			—			444			—		—
11477 Cash - Citibank (9462)		6,631			—			6,631			—		—
11483 Cash - Cole Taylor (6577)		4,594			—			4,594			—		—
11487 Cash - US Bank (6180)		24,212			—			24,212			—		—
11493 Cash - First Place (6590)		198			—			198			—		—
11494 Cash - Frost National (2394)		176			—			176			—		—
11495 Cash - Comerica (5247)		5,245			—			5,245			—		—
11505 Cash - Bremer (1137)		(678	)		—			(678	)		—		—
11508 Cash - NBT Bank (0419)		177			—			177			—		—
11537 Cash - First National - Utah (8801)		154			—			154			—		—
11538 Cash - First Sentry (2195)		3,051			—			3,051			—		—
11539 Cash - First National of Burleson (7881)		102			—			102			—		—
11570 Cash - Plains Commerce (3268)		2,630			—			2,630			—		—
11571 Cash - PNC (5029)		18,118			—			18,118			—		—
11573 Cash - Huntington National (0721)		2,302			—			2,302			—		—
11577 Cash - 5/3 Bank (4021)		5,054			—			5,054			—		—
11581 Cash - Key Bank (7205)		6,629			—			6,629			—		—
11599 Cash - BMO Harris (9030)		783			—			783			—		—
11602 Cash - Pennstar Bank (1641)		126			—			126			—		—
11603 Cash - People’s United (2442)		120			—			120			—		—
11604 Cash - Pioneer Natl of Duluth (5500)		181			—			181			—		—
11605 Cash - Sovereign (6840)		2,674			—			2,674			—		—
11606 Cash - Sovereign (7956)		7,644			—			7,644			—		—
11607 Cash - B of A - La Salle (5141)		10,171			—			10,171			—		—
11609 Cash - Citizens (2501)		5,908			—			5,908			—		—
11634 Cash - Sun National (8134)		397			—			397			—		—
11635 Cash - Suntrust (7978)		13,112			—			13,112			—		—
11651 Cash - BofA Inv (Cash/Cash Eq)		5,070,454			5,070,454			—			—		—
11652 Cash - UBS Money Market		100,037			100,037			—			—		—
11664 Cash - Salem Five (1098)		2,511			—			2,511			—		—
11669 Cash - First American (4601)		1,116			—			1,116			—		—
11675 Cash - Bank Financial (3903)		5,154			—			5,154			—		—
11684 Cash - Regions (4895)		33,952			—			33,952			—		—
11686 Cash - Umpqua (1802)		379			—			379			—		—
11687 Cash - Valley National Bank (9151)		2,347			—			2,347			—		—
		14,250,713			16,170,326			(1,984,714	)		65,101		—

In re The Wet Seal, Inc.,etal.	Case No. 15-10081 (CSS)
	Reporting Period: 1/15/2015 to 1/31/2015

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

This schedule is to include all retained professional payments from case inception to current month.

				Check		Amount Paid		Year-To-Date
Payee	Period Covered	Amount Approved	Payor	Number	Date	Fees	Expenses	Fees	Expenses
None paid for the reporting period.

In re The Wet Seal, Inc.,etal.	Case No. 15-10081 (CSS)
	Reporting Period: 1/15/2015 to 1/31/2015

MOR - 2

Debtor Income Statement-By Entity

For the Month Ended January 31, 2015

(In thousands)

				01			02			03		04
	CONSOLIDATED			WS INC(Co 01)			WS RETAIL(Co 02)			WS INTERNET(Co 03)		WS GC(Co 04)
Unaudited	Actual			Actual			Actual			Actual		Actual
Sales		5,409			—			4,948			461		—
Cost of Sales		2,222			—			2,096			125		—
Buying		194			194			—			—		—
Planning/Allocation		53			53			—			—		—
Warehouse		171			—			171			—		—
Occupancy		1,840			—			1,840			—		—
Total Cost of Sales		4,479			247			4,107			125		—
Gross Profit		930			(247	)		841			336		—
Gross Profit (Retail)		3,187			—			2,852			336		—
S,G & A
Selling-Store Expense		3,136			—			2,898			230		7
Selling-Field Support		208			—			208			—		—
Gen & Admin Expense		2,813			2,716			29			67		—
Total S,G&A Expenses		6,157			2,716			3,136			297		7
Operating (Loss) Income		(5,227	)		(2,963	)		(2,295	)		38		(7	)
Interest Exp , Net		(98	)		(98	)		—			—		—
(Loss) Inc Cont Ops B4 Tax		(5,325	)		(3,061	)		(2,295	)		38		(7	)
Inc Tax Provision		31			31			—			—		—
(Loss) Inc from Cont Ops		(5,356	)		(3,092	)		(2,295	)		38		(7	)
Net Inc (Loss) Disc Ops		—			—			—			—		—
Net (Loss) Inc-CS		(5,356	)		(3,092	)		(2,295	)		38		(7	)

In re The Wet Seal, Inc.,etal.	Case No. 15-10081 (CSS)
	Reporting Period: 1/15/2015 to 1/31/2015

MOR - 3

Balance Sheet-By Entity-Condensed

January 31, 2015

				01			02			03			04
	CONSOLIDATED			WS INC(Co 01)			WS RETAIL(Co 02)			WS INTERNET(Co 03)			WS GC(Co 04)
	Actual			Actual			Actual			Actual			Actual
Assets
Current Assets:
Cash And Cash Equivalents		14,250,713			16,170,326			(1,984,714	)		65,101			0
Other Receivables		5,627,631			4,906,596			695,847			0			25,188
Merchandise Inventories		8,926,848			0			7,574,189			1,352,659			0
Prepaid Expenses		8,009,811			3,471,397			4,538,414			0			0
Total Current Assets		36,815,003			24,548,319			10,823,736			1,417,760			25,188
Equipment And Leasehold Improvements:
Leasehold Improvements		24,119,807			2,812,955			21,289,201			17,651			0
Furniture, Fixtures And Equipment		39,727,770			20,883,844			15,619,419			3,224,507			0
Construction In Progress		1,682,744			895,547			787,197			0			0
Less Accumulated Depreciation		(44,472,026	)		(19,219,394	)		(23,033,571	)		(2,219,061	)		0
Net Equipment And Leasehold Improvements		21,058,295			5,372,952			14,662,246			1,023,097			0
Other Assets:
Other Assets and CEO Retirement Plan		1,914,360			1,706,157			206,203			2,000			0
Total Other Assets		1,914,360			1,706,157			206,203			2,000			0
Total Assets		59,787,658			31,627,428			25,692,185			2,442,857			25,188
Liabilities And Stockholders’ (Deficit) Equity
Current Liabilities:
Accounts Payable-Merchandise
Subject to compromise		8,019,127			0			6,014,345			2,004,782			0
Not subject to compromise		544,260			0			408,195			136,065			0
Accounts Payable
Subject to compromise		7,710,166			169,886			7,254,082			286,198			0
Not subject to compromise		2,465,200			1,175,499			1,137,708			138,026			13,967
Accrued Liabilities
Subject to compromise		3,119,302			78,661			3,040,641			0			0
Not subject to compromise		13,725,330			1,126,925			9,000,150			273,644			3,324,611
S-T Portion of Notes/Warrants/Derivatives		15,765,185			15,765,185			0			0			0
Unamortized Debt Discount - Current		(2,352,897	)		(2,352,897	)		0			0			0
Short-Term Deferred Rent		1,317,292			0			1,317,292			0			0
Intercompany AP/AR - NET		1			193,500,202			(132,640,247	)		(69,215,453	)		8,355,499
Total Current Liabilities		50,312,966			209,463,461			(104,467,834	)		(66,376,738	)		11,694,077
Long Term Liabilities:
Convertible Notes - Long Term		13,150,000			13,150,000			0			0			0
Unamortized Debt Discount - Long-Term		(1,211,025	)		(1,211,025	)		0			0			0
Deferred Rent		11,011,490			0			11,011,490			0			0
Total Long Term Liabilities		22,950,465			11,938,975			11,011,490			0			0
Total Liabilities		73,263,431			221,402,436			(93,456,344	)		(66,376,738	)		11,694,077
Stockholders’ (Deficit) Equity:
Common Stock		8,459,234			8,459,234			0			0			0
Paid-In Capital		218,818,803			218,818,803			0			0			0
Retained Earnings		(157,863,950	)		(370,728,421	)		159,068,328			64,916,244			(11,120,101	)
Current Period Earnings		(82,834,240	)		(46,269,004	)		(39,919,799	)		3,903,351			(548,788	)
Less Cost Of Treasury Stock		(55,620	)		(55,620	)		0			0			0
Total Stockholders’ (Deficit) Equity		(13,475,773	)		(189,775,008	)		119,148,529			68,819,595			(11,668,889	)
Total Liabilities And Stockholders’ Equity		59,787,658			31,627,428			25,692,185			2,442,857			25,188

In re The Wet Seal, Inc.,etal.	Case No. 15-10081 (CSS)
	Reporting Period: 1/15/2015 to 1/31/2015

STATUS OF POSTPETITION TAXES

The Wet Seal, Inc.

	Beginning Tax Liability		Amount Withheld or Accrued		Amount Paid		Ending Tax Liability
Federal
Withholding		—		204,293		204,293		—
FICA-Employee		—		127,339		127,339		—
FICA-Employer		—		127,339		127,339		—
Total Federal Taxes		—		458,972		458,972		—
State and Local
Withholding		—		67,743		67,743		—
Sales		—		244,752		176,920		67,832
Unemployment		—		7,155		7,155		—
Income		—		30,945		—		30,945
Personal Property		—		12,427		—		12,427
Total State and Local		—		363,022		251,818		111,204
Total Taxes		—		821,994		710,790		111,204

SUMMARY OF UNPAID POSTPETITION DEBTS

The Wet Seal, Inc.

	Number of Days Past Due
	Current		0-30		31-60		61-90		Over 90		Total
Accounts Payable		1,511,145		—								1,511,145
Wages Payable		680,825		—								680,825
Taxes Payable		111,204		—								111,204
Rent/Leases-Building		—		2,043,204								2,043,204
Professional Fees		1,051,815		—								1,051,815
Total Postpetition Debts		3,354,989		2,043,204		—		—		—		5,398,193

In re The Wet Seal, Inc.,etal.	Case No. 15-10081 (CSS)
	Reporting Period: 1/15/2015 to 1/31/2015

DEBTOR QUESTIONNAIRE

Must be completed each month		Yes	No
1.	Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.		X
2.	Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.		X
3.	Have all postpetition tax returns been timely filed? If no, provide an explanation below.	X
4.	Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.	X
5.	Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been provide the required documentation pursuant to the Delaware Local Rule 4001-3.		X