FOOTHILL RANCH, Calif. — As part of its push toward forcing Wet Seal to put itself up for sale, investor Clinton Group has named its own slate of board candidates to replace the existing members.
Clinton’s candidates include former United Retail Group chief Raphael Benaroya, former chairman and CEO of Charming Shoppes Dorrit Bern, former Aeropostale co-CEO Mindy Meads, former Aeropostale COO John Mills, and investment banker Lynda Davey.
Clinton Group owns more than 5% of Wet Seal and has been vocal in its criticisms of the chain’s financial struggles. On Wednesday, current Wet Seal chairman of the board Harold Kahn adopted a poison pill defense and also retained Guggenheim Securities and Peter J. Solomon Co. to perform a strategic review of the company to maximize shareholder value.
According to Clinton’s senior portfolio manager Joseph De Perio on Thursday: “This board has failed shareholders. After years of strategy shifts, personnel changes and financial and operational mismanagement, it is time for shareholders to put in place a board that will work feverishly to fix the damage.”
Wet Seal fired its CEO Susan McGalla on July 23, and Clinton Group called for the sale of the company on the same day.