FOOTHILL RANCH, Calif. — Teen retailer Wet Seal continues to urge its shareholders to reject efforts by Clinton Group to replace the company’s current experienced directors with Clinton Group’s hand-picked nominees who lack relevant experience.
“We believe that maintaining a degree of stability and continuity on our Board is critical as we approach the holiday season,” said Hal Kahn, chairman of the board of Wet Seal. “It is not in the best interests of the company and our shareholders to have an almost complete turnover of the Board on the eve of the fourth quarter. It would be extremely disruptive to our employees, customers and suppliers at a time when we are in the midst of implementing a return to our fast fashion strategy and beginning to gain traction in improving our performance.”
Clinton, which holds approximately 7% of Wet Seal, said the retailer backtracked on an offer, made via an investment banker, for four directors to resign in exchange for the activist investor ending its move, according to a Reuters report.
Clinton has argued that Wet Seal's performance over the last five years has been unnecessarily poor, and that the board has made missteps in its hiring and strategy.
Wet Seal on Tuesday reported a 12.7% decline in September same-store sales. Clinton has argued that Wet Seal's performance over the last five years has been unnecessarily poor, and that the board has made missteps in its hiring and strategy, Reuters said.