West L.A. investment bank B. Riley Financial Inc. announced Friday that it has reached an agreement to provide $20 million in debtor-in-possession financing to beleaguered teen retailer Wet Seal Inc.

The Foothill Ranch chain of clothing stores filed for Chapter 11 bankruptcy on Jan. 15. Wet Seal currently operates 173 stores in 43 states after shuttering 338 shops in what’s been a challenging business environment for shopping malls, where most of Wet Seal’s stores are located.

B. Riley has agreed to provide a $20 million term loan, including a $5 million block to be made available at closing, to help fund the company’s operations during the bankruptcy proceedings.

“We are pleased to provide financial assistance to Wet Seal in its efforts to revive this iconic fashion retailer,” said B. Riley Chairman Bryant Riley. “Taking a collaborative approach, and tapping our vast array of financial services, we believe that we have developed a financial solution that should benefit all parties involved.”

Shares of Wet Seal, which listed about $93 million in assets and $103 million in liabilities in its bankruptcy filings, currently trade at 4 cents a share on the Nasdaq.