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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 16pt"><B>UNITED
STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="font-size: 12pt"><B>WASHINGTON,
D.C. 20549</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center"><FONT STYLE="font-size: 16pt"><B>FORM
8-K</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="font-size: 12pt"><B>CURRENT
REPORT</B></FONT><BR>
<BR>
<FONT STYLE="font-size: 12pt"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE</B></FONT><BR>
<FONT STYLE="font-size: 12pt"><B>SECURITIES EXCHANGE ACT OF 1934</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="font-weight: normal">Date
of Report (Date of earliest event reported): March 21, 2014 (March 20, 2014)</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 16pt"><B>THE WET
SEAL, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="font-weight: normal">(Exact
name of registrant as specified in its charter)</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>&nbsp;</B></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; font-size: 10pt; text-align: center; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Delaware</B></FONT><BR>
<FONT STYLE="font-weight: normal">(State or other jurisdiction</FONT><BR>
<FONT STYLE="font-weight: normal">of incorporation)</FONT></TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; font-size: 10pt; text-align: center; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>001-35634</B></FONT><BR>
<FONT STYLE="font-weight: normal">(Commission File Number)</FONT></TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; font-size: 10pt; text-align: center; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>33-0415940</B></FONT><BR>
<FONT STYLE="font-weight: normal">(IRS Employer</FONT><BR>
<FONT STYLE="font-weight: normal">Identification No.)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: center; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>26972 Burbank</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Foothill Ranch, CA&nbsp;&nbsp;92160</B></FONT><BR>
<FONT STYLE="font-weight: normal">(Address of principal executive offices; zip code)</FONT></TD></TR>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 24pt 0 12pt; text-align: center"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">Registrant&#8217;s
telephone number, including area code:</FONT><BR>
(949) 699-3900<BR>
<BR>
N/A<BR>
<FONT STYLE="font-weight: normal">(Former name or former address, if changed since last report)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><FONT STYLE="font-weight: normal">Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:</FONT></P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Wingdings">&uml;</FONT></TD><TD><FONT STYLE="font-weight: normal">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Wingdings">&uml;</FONT></TD><TD><FONT STYLE="font-weight: normal">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Wingdings">&uml;</FONT></TD><TD><FONT STYLE="font-weight: normal">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d 2(b))</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Wingdings">&uml;</FONT></TD><TD><FONT STYLE="font-weight: normal">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</FONT></TD></TR></TABLE>

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<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>Item 1.01.&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entry Into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">On March 20, 2014, The Wet Seal,
Inc. (the &#8220;<U>Company</U>&#8221;) entered into a Securities Purchase Agreement (the &#8220;<U>Purchase
Agreement</U>&#8221;) with a single institutional investor (the &#8220;<U>Investor</U>&#8221;), pursuant to which the Company
will sell $27 million of convertible senior notes (the &#8220;<U>Notes</U>&#8221;) and warrants (the
&#8220;<U>Warrants</U>&#8221;) to purchase up to 8,804,348 of the Company&#8217;s Class&nbsp;A common stock, par value $0.10
per share (the &#8220;<U>Common Stock</U>&#8221;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Purchase Agreement, form of Notes
and form of Warrants are attached hereto as Exhibits&nbsp;10.1, 10.2 and 10.3, respectively. The closing of the transactions contemplated
by the Purchase Agreement, the Notes and the Warrants (the &#8220;<U>Closing</U>&#8221;) is expected to occur on March&nbsp;26,
2014 (the &#8220;<U>Closing Date</U>&#8221;), subject to the satisfaction of certain customary closing conditions.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>Description of the Notes </I></B></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><I>Maturity Date</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Unless earlier converted or redeemed,
the Notes will mature on the third anniversary of the Closing (&#8220;<U>Maturity Date</U>&#8221;), subject to the right of the
investors to extend the date under certain circumstances.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><I>Interest</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Notes bear interest at a rate of
6% per annum, subject to increase to 18% per annum upon the occurrence and continuance of an event of default (as described below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Interest on the Notes is payable monthly,
in shares of Common Stock, subject to the satisfaction of certain equity conditions, or, at the Company&#8217;s option, in cash.
The number of shares of Common Stock to be paid as interest on the Notes shall be calculated using an interest conversion price
equal to the lesser of (x) the then prevailing conversion price and (y) 90% of the lesser of the average of the volume weighted
average price of the Common Stock for (1) the 10 consecutive trading days immediately before the interest payment date and (2)
the trading day immediately before the interest payment date.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><I>Conversion</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">All amounts due under the Notes are convertible
at any time, in whole or in part, at the option of the holders into shares of Common Stock at a fixed conversion price, which is
subject to adjustment for stock splits, combinations or similar events. The Notes are convertible into shares of Common Stock at
the initial price of $1.84 per share.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><I>Mandatory Amortization of Notes</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Company has agreed to make
amortization payments with respect to the principal amount of the Notes in shares of Common Stock, subject to the
satisfaction of certain equity conditions, using the same conversion price formula described above with respect to payments
of interest, or, at the Company&#8217;s option, in cash, beginning on September 26, 2014 and every calendar month
anniversary thereafter through and including the Maturity Date.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">On each of the first 6 installment dates
(through the one-year anniversary of the Closing Date), the Company&#8217;s scheduled amortization payment will be an amount equal
to $350,000 of Notes. For each of the subsequent 12 installment dates (through the two-year anniversary of the Closing Date), the
Company&#8217;s scheduled amortization payment will be an amount equal to $1,000,000 of Notes. For each of the final 12 installment
dates (through the three-year anniversary of the Closing Date), the Company&#8217;s scheduled amortization payment will be an amount
equal to $1,075,000 of Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Any holder of Notes may, at such
holder&#8217;s option, defer all, or any part, of a scheduled amortization to a later amortization date or, subject to
certain conditions, at any time from and after the thirteen month anniversary of the Closing Date, solely if the Company is
making the scheduled amortization payment for such scheduled amortization date in shares of common stock, accelerate a
limited amount of scheduled amortization payments.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><I>Events of Default </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Notes contain standard and customary
events of default including but not limited to: (i) failure to make payments when due under the Notes; (ii)&nbsp;bankruptcy or
insolvency of the Company; and (iii) certain failures to comply with the requirements under the Registration Rights Agreement described
below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">If there is an event of default, a holder
of the Notes may require the Company to redeem all or any portion of the Notes (including all accrued and unpaid interest and all
interest that would have accrued through the Maturity Date), in cash, at a price equal to the greater of: (i)&nbsp;115% of the
amount being redeemed, and (ii)&nbsp;the product of (A) 100% of the amount being redeemed, and (B)&nbsp;the quotient determined
by dividing (x) the highest closing sale price of the Common Stock on any trading day during the period beginning on the date immediately
before the event of default and ending on the date of redemption, by (z) the lowest conversion price in effect during such period.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">Change of Control</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">In the event of transactions involving
a change of control, the holder of a Note will have the right to require the Company to redeem all or any portion of the Note
it holds (including all accrued and unpaid interest thereon), in cash, at a price equal to 115% of the amount of the Note being
redeemed, subject to formula details specified in the Note.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><I>19.99% Cap</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Company is prohibited from issuing
shares of Common Stock pursuant to the Notes in excess of 19.99% of the issued and outstanding shares of Common Stock immediately
prior to the transaction unless stockholder approval of such issuance of securities is obtained as required by applicable NASDAQ
rules. In the event that the Company is prohibited from issuing any shares of Common Stock as a result of the stockholder approval
limitation, the Company shall pay cash in lieu thereof to the holder.</P>


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<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><I></I></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><I>Limitations on Conversion and Issuance</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">A Note may not be converted and shares
of Common Stock may not be issued under the Notes if, after giving effect to the conversion or issuance, the holder together with
its affiliates would beneficially own in excess of 4.99% of the outstanding shares of Common Stock. At each holder&#8217;s option,
the cap may be raised or lowered to any other percentage not in excess of 9.99%, except that any raise will only be effective upon
61-days&#8217; prior notice to the Company.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><I>Cash Subordination upon Proceeding or Redemption
Event</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Upon the occurrence (and during the continuance)
of either (x) a voluntary or involuntary bankruptcy proceeding by the Company or any of its subsidiaries or (y) the acceleration
of certain secured obligations of the Company under its Amended and Restated Credit Agreement by and between the Company and Bank
of America, N.A., dated as of February 3, 2011, as amended (the &#8220;<U>Senior Debt</U>&#8221;), and the occurrence of an event
of default or change of control redemption under the Notes, the holders of Notes shall not be permitted to be paid in cash until
the Senior Debt has been paid in cash in full.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>Description of the Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Warrants entitle the holders of the
Warrants to purchase, in the aggregate, up to 8,804,348 shares of Common Stock. The Warrants will be exercisable beginning six
months and one day after issuance through the fifth anniversary of such initial exercisability date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Warrants will be exercisable at an
initial exercise price equal to $2.12 per share. The exercise price of the Warrants is subject to adjustment for stock splits,
combinations or similar events. In addition, the exercise price is also subject to a &#8220;full ratchet&#8221; anti-dilution adjustment,
subject to customary exceptions, in the event that the Company issues or is deemed to have issued securities at a price lower than
the then applicable exercise price, subject to a floor on the exercise price of $1.76 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Warrants may be exercised for cash,
provided that, if there is no effective registration statement available registering the exercise of the Warrants, the Warrants
may be exercised on a cashless basis.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><I>Limitations on Exercise</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Warrants may not be exercised if,
after giving effect to the exercise, the holder of the Warrant together with its affiliates would beneficially own in excess of
4.99% of the outstanding shares of Common Stock. At a holder&#8217;s option, the cap applicable to the exercise of the Warrants
may be raised or lowered to any other percentage not in excess of 9.99%, except that any increase will only be effective upon 61-days&#8217;
prior notice to the Company.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><I>Black Scholes Redemption Right</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Upon the occurrence of change of control,
a holder of a Warrant will have the right to require the Company to repurchase the holder&#8217;s Warrant for a purchase price
in cash equal to the Black Scholes value (as calculated under the Warrants) of the then unexercised portion of the Warrant.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>Registration Rights Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">In connection with the Purchase Agreement,
the Company intends to enter into a Registration Rights Agreement (the &#8220;<U>Registration Rights Agreement</U>&#8221;) with
the Investor, the form of which is attached hereto as Exhibit&nbsp;10.4, pursuant to which the Company agreed to file a registration
statement with the U.S. Securities and Exchange Commission (the &#8220;SEC&#8221;) to register 135% of the maximum number of shares
of Common Stock issuable pursuant to the Notes and 100% of the maximum number of shares of Common Stock issuable upon exercise
of the Warrants. Pursuant to the Registration Rights Agreement, the Company is required to file the registration statement by May
10, 2014, to have such registration statement declared effective within 90 days of the Closing, and to maintain the effectiveness
of such registration statement for so long as the Notes, Warrants or shares of Common Stock issued pursuant to the Notes or Warrants
are held by the Investors or their permitted assignees. The Company may become responsible for certain payments if it fails to
meet its obligations under the Registration Rights Agreement.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>Subsidiary Guarantees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Company&#8217;s wholly-owned subsidiaries,
The Wet Seal Catalog Inc., The Wet Seal GC, LLC, and The Wet Seal Retail Inc., will guarantee all of the obligations of the Company
with respect to the Investor under the Purchase Agreement, the Notes, the Warrants and the Registration Rights Agreement pursuant
to a Guaranty, the form of which is attached hereto as Exhibit 10.5.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>Lock-up Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">As a condition to the sale of the Notes
and the Warrants, the Company&#8217;s directors and officers will enter into lock-up agreements pursuant to which they will agree
not to sell, pledge, hypothecate or otherwise transfer their shares for a period of up to one year commencing on the date of the
Closing, subject to certain exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The foregoing descriptions of the Purchase
Agreement, the Notes, the Warrants, the Registration Rights Agreement, the Guaranty and the Lock-Up Agreements, are summaries,
and are qualified in their entirety by reference to such documents, which are attached hereto as Exhibit 10.1, Exhibit 10.2, Exhibit
10.3, Exhibit 10.4, Exhibit 10.5, and Exhibit 10.6, respectively, and are incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Company issued a press release announcing
the foregoing transaction on March 20, 2014, a copy of which is attached hereto as Exhibit 99.1.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>Item 2.03.  &#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Creation of a Direct Financial Obligation
or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The information set forth in Item 1.01
is incorporated herein by reference.</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>Item 3.02. &#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unregistered Sales of Equity Securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The information contained in Item 1.01
is hereby incorporated by reference. The Notes and the Warrants were offered and sold to an accredited investor pursuant to an
exemption from the registration requirements under Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 of Regulation
D promulgated thereunder. In connection with this transactions, the Company will pay a placement agent fee of 5.0% of the gross
proceeds.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>Item 8.01. &#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Events.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The Company issued a press release announcing
the transaction set forth in Item&nbsp;1.01. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated
herein by reference.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>Item 9.01.&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>(d) Exhibits</I></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; border-bottom: Black 0.5pt solid"><B>Exhibit No.</B></P></TD>
    <TD STYLE="width: 82%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; border-bottom: Black 0.5pt solid"><B>Description</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.1</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Securities Purchase Agreement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.2</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form of Senior Convertible Note</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.3</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form of Warrant</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.4</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form of Registration Rights Agreement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.5</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form of Guaranty</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.6</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form of Lock-Up Agreement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">99.1</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Press Release</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.5in; text-align: left; text-indent: -0.5in">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 24pt; text-align: center"><B>SIGNATURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Pursuant to the
requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.&nbsp;</P>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="vertical-align: top">Date: March 21, 2014&#9;</TD>
    <TD COLSPAN="2">THE WET SEAL, INC.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 50%">&nbsp;</TD>
    <TD STYLE="width: 6%">By:&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 44%">/s/ Steven H. Benrubi</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>Name:</TD>
    <TD STYLE="vertical-align: top; border-top: #000000 1px solid">Steven H. Benrubi</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">Title:&#9;</TD>
    <TD STYLE="vertical-align: top">Executive Vice President and<BR>
Chief Financial Officer</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 0pt; margin-top: 0pt; margin-bottom: 6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 0pt; margin-top: 0pt; margin-bottom: 6pt"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">&nbsp;<BR></P>


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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; border-bottom: Black 0.5pt solid"><B>Exhibit No.</B></P></TD>
    <TD STYLE="width: 82%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; border-bottom: Black 0.5pt solid"><B>Description</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.1</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Securities Purchase Agreement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.2</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form of Senior Convertible Note</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.3</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form of Warrant</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.4</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form of Registration Rights Agreement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.5</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form of Guaranty</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.6</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form of Lock-Up Agreement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">99.1</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Press Release</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

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{"company-data": {"conformed-name": "WET SEAL INC", "cik": "0000863456", "assigned-sic": "5621", "irs-number": "330415940", "state-of-incorporation": "DE", "fiscal-year-end": "0128"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-35634", "film-number": "14708285"}, "business-address": {"street1": "26972 BURBANK", "city": "FOOTHILL RANCH", "state": "CA", "zip": "92610", "phone": "7145839029"}, "mail-address": {"street1": "26972 BURBANK", "city": "FOOTHILL RANCH", "state": "CA", "zip": "92610"}}
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported): March 21, 2014 (March 20, 2014)
THE WET
SEAL, INC.
(Exact
name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation)
001-35634
(Commission File Number)
33-0415940
(IRS Employer
Identification No.)
26972 Burbank
Foothill Ranch, CA  92160
(Address of principal executive offices; zip code)
Registrant's
telephone number, including area code:
(949) 699-3900
N/A
(Former name or former address, if changed since last report)
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d 2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 1.01.	         Entry Into a Material Definitive Agreement.
On March 20, 2014, The Wet Seal,
Inc. (the "
Company
") entered into a Securities Purchase Agreement (the "
Purchase
Agreement
") with a single institutional investor (the "
Investor
"), pursuant to which the Company
will sell $27 million of convertible senior notes (the "
Notes
") and warrants (the
"
Warrants
") to purchase up to 8,804,348 of the Company's Class A common stock, par value $0.10
per share (the "
Common Stock
").
The Purchase Agreement, form of Notes
and form of Warrants are attached hereto as Exhibits 10.1, 10.2 and 10.3, respectively. The closing of the transactions contemplated
by the Purchase Agreement, the Notes and the Warrants (the "
Closing
") is expected to occur on March 26,
2014 (the "
Closing Date
"), subject to the satisfaction of certain customary closing conditions.
Description of the Notes
Maturity Date
Unless earlier converted or redeemed,
the Notes will mature on the third anniversary of the Closing ("
Maturity Date
"), subject to the right of the
investors to extend the date under certain circumstances.
Interest
The Notes bear interest at a rate of
6% per annum, subject to increase to 18% per annum upon the occurrence and continuance of an event of default (as described below).
Interest on the Notes is payable monthly,
in shares of Common Stock, subject to the satisfaction of certain equity conditions, or, at the Company's option, in cash.
The number of shares of Common Stock to be paid as interest on the Notes shall be calculated using an interest conversion price
equal to the lesser of (x) the then prevailing conversion price and (y) 90% of the lesser of the average of the volume weighted
average price of the Common Stock for (1) the 10 consecutive trading days immediately before the interest payment date and (2)
the trading day immediately before the interest payment date.
Conversion
All amounts due under the Notes are convertible
at any time, in whole or in part, at the option of the holders into shares of Common Stock at a fixed conversion price, which is
subject to adjustment for stock splits, combinations or similar events. The Notes are convertible into shares of Common Stock at
the initial price of $1.84 per share.
Mandatory Amortization of Notes
The Company has agreed to make
amortization payments with respect to the principal amount of the Notes in shares of Common Stock, subject to the
satisfaction of certain equity conditions, using the same conversion price formula described above with respect to payments
of interest, or, at the Company's option, in cash, beginning on September 26, 2014 and every calendar month
anniversary thereafter through and including the Maturity Date.
1
On each of the first 6 installment dates
(through the one-year anniversary of the Closing Date), the Company's scheduled amortization payment will be an amount equal
to $350,000 of Notes. For each of the subsequent 12 installment dates (through the two-year anniversary of the Closing Date), the
Company's scheduled amortization payment will be an amount equal to $1,000,000 of Notes. For each of the final 12 installment
dates (through the three-year anniversary of the Closing Date), the Company's scheduled amortization payment will be an amount
equal to $1,075,000 of Notes.
Any holder of Notes may, at such
holder's option, defer all, or any part, of a scheduled amortization to a later amortization date or, subject to
certain conditions, at any time from and after the thirteen month anniversary of the Closing Date, solely if the Company is
making the scheduled amortization payment for such scheduled amortization date in shares of common stock, accelerate a
limited amount of scheduled amortization payments.
Events of Default
The Notes contain standard and customary
events of default including but not limited to: (i) failure to make payments when due under the Notes; (ii) bankruptcy or
insolvency of the Company; and (iii) certain failures to comply with the requirements under the Registration Rights Agreement described
below.
If there is an event of default, a holder
of the Notes may require the Company to redeem all or any portion of the Notes (including all accrued and unpaid interest and all
interest that would have accrued through the Maturity Date), in cash, at a price equal to the greater of: (i) 115% of the
amount being redeemed, and (ii) the product of (A) 100% of the amount being redeemed, and (B) the quotient determined
by dividing (x) the highest closing sale price of the Common Stock on any trading day during the period beginning on the date immediately
before the event of default and ending on the date of redemption, by (z) the lowest conversion price in effect during such period.
Change of Control
In the event of transactions involving
a change of control, the holder of a Note will have the right to require the Company to redeem all or any portion of the Note
it holds (including all accrued and unpaid interest thereon), in cash, at a price equal to 115% of the amount of the Note being
redeemed, subject to formula details specified in the Note.
19.99% Cap
The Company is prohibited from issuing
shares of Common Stock pursuant to the Notes in excess of 19.99% of the issued and outstanding shares of Common Stock immediately
prior to the transaction unless stockholder approval of such issuance of securities is obtained as required by applicable NASDAQ
rules. In the event that the Company is prohibited from issuing any shares of Common Stock as a result of the stockholder approval
limitation, the Company shall pay cash in lieu thereof to the holder.
2
Limitations on Conversion and Issuance
A Note may not be converted and shares
of Common Stock may not be issued under the Notes if, after giving effect to the conversion or issuance, the holder together with
its affiliates would beneficially own in excess of 4.99% of the outstanding shares of Common Stock. At each holder's option,
the cap may be raised or lowered to any other percentage not in excess of 9.99%, except that any raise will only be effective upon
61-days' prior notice to the Company.
Cash Subordination upon Proceeding or Redemption
Event
Upon the occurrence (and during the continuance)
of either (x) a voluntary or involuntary bankruptcy proceeding by the Company or any of its subsidiaries or (y) the acceleration
of certain secured obligations of the Company under its Amended and Restated Credit Agreement by and between the Company and Bank
of America, N.A., dated as of February 3, 2011, as amended (the "
Senior Debt
"), and the occurrence of an event
of default or change of control redemption under the Notes, the holders of Notes shall not be permitted to be paid in cash until
the Senior Debt has been paid in cash in full.
Description of the Warrants
The Warrants entitle the holders of the
Warrants to purchase, in the aggregate, up to 8,804,348 shares of Common Stock. The Warrants will be exercisable beginning six
months and one day after issuance through the fifth anniversary of such initial exercisability date.
The Warrants will be exercisable at an
initial exercise price equal to $2.12 per share. The exercise price of the Warrants is subject to adjustment for stock splits,
combinations or similar events. In addition, the exercise price is also subject to a "full ratchet" anti-dilution adjustment,
subject to customary exceptions, in the event that the Company issues or is deemed to have issued securities at a price lower than
the then applicable exercise price, subject to a floor on the exercise price of $1.76 per share.
The Warrants may be exercised for cash,
provided that, if there is no effective registration statement available registering the exercise of the Warrants, the Warrants
may be exercised on a cashless basis.
Limitations on Exercise
The Warrants may not be exercised if,
after giving effect to the exercise, the holder of the Warrant together with its affiliates would beneficially own in excess of
4.99% of the outstanding shares of Common Stock. At a holder's option, the cap applicable to the exercise of the Warrants
may be raised or lowered to any other percentage not in excess of 9.99%, except that any increase will only be effective upon 61-days'
prior notice to the Company.
Black Scholes Redemption Right
Upon the occurrence of change of control,
a holder of a Warrant will have the right to require the Company to repurchase the holder's Warrant for a purchase price
in cash equal to the Black Scholes value (as calculated under the Warrants) of the then unexercised portion of the Warrant.
3
Registration Rights Agreement
In connection with the Purchase Agreement,
the Company intends to enter into a Registration Rights Agreement (the "
Registration Rights Agreement
") with
the Investor, the form of which is attached hereto as Exhibit 10.4, pursuant to which the Company agreed to file a registration
statement with the U.S. Securities and Exchange Commission (the "SEC") to register 135% of the maximum number of shares
of Common Stock issuable pursuant to the Notes and 100% of the maximum number of shares of Common Stock issuable upon exercise
of the Warrants. Pursuant to the Registration Rights Agreement, the Company is required to file the registration statement by May
10, 2014, to have such registration statement declared effective within 90 days of the Closing, and to maintain the effectiveness
of such registration statement for so long as the Notes, Warrants or shares of Common Stock issued pursuant to the Notes or Warrants
are held by the Investors or their permitted assignees. The Company may become responsible for certain payments if it fails to
meet its obligations under the Registration Rights Agreement.
Subsidiary Guarantees
The Company's wholly-owned subsidiaries,
The Wet Seal Catalog Inc., The Wet Seal GC, LLC, and The Wet Seal Retail Inc., will guarantee all of the obligations of the Company
with respect to the Investor under the Purchase Agreement, the Notes, the Warrants and the Registration Rights Agreement pursuant
to a Guaranty, the form of which is attached hereto as Exhibit 10.5.
Lock-up Agreements
As a condition to the sale of the Notes
and the Warrants, the Company's directors and officers will enter into lock-up agreements pursuant to which they will agree
not to sell, pledge, hypothecate or otherwise transfer their shares for a period of up to one year commencing on the date of the
Closing, subject to certain exceptions.
The foregoing descriptions of the Purchase
Agreement, the Notes, the Warrants, the Registration Rights Agreement, the Guaranty and the Lock-Up Agreements, are summaries,
and are qualified in their entirety by reference to such documents, which are attached hereto as Exhibit 10.1, Exhibit 10.2, Exhibit
10.3, Exhibit 10.4, Exhibit 10.5, and Exhibit 10.6, respectively, and are incorporated herein by reference.
The Company issued a press release announcing
the foregoing transaction on March 20, 2014, a copy of which is attached hereto as Exhibit 99.1.
Item 2.03.  	        Creation of a Direct Financial Obligation
or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01
is incorporated herein by reference.
4
Item 3.02. 	         Unregistered Sales of Equity Securities.
The information contained in Item 1.01
is hereby incorporated by reference. The Notes and the Warrants were offered and sold to an accredited investor pursuant to an
exemption from the registration requirements under Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 of Regulation
D promulgated thereunder. In connection with this transactions, the Company will pay a placement agent fee of 5.0% of the gross
proceeds.
Item 8.01. 	         Other Events.
The Company issued a press release announcing
the transaction set forth in Item 1.01. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated
herein by reference.
Item 9.01.	         Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
Description
10.1
Securities Purchase Agreement
10.2
Form of Senior Convertible Note
10.3
Form of Warrant
10.4
Form of Registration Rights Agreement
10.5
Form of Guaranty
10.6
Form of Lock-Up Agreement
99.1
Press Release
5
SIGNATURE
Pursuant to the
requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Date: March 21, 2014
THE WET SEAL, INC.
By:
/s/ Steven H. Benrubi
Name:
Steven H. Benrubi
Title:
Executive Vice President and
Chief Financial Officer
6
Exhibit No.
Description
10.1
Securities Purchase Agreement
10.2
Form of Senior Convertible Note
10.3
Form of Warrant
10.4
Form of Registration Rights Agreement
10.5
Form of Guaranty
10.6
Form of Lock-Up Agreement
99.1
Press Release