FOOTHILL RANCH, Calif. — Wet Seal, just days after encouraging its shareholders to reject efforts by Clinton Group to replace its board of directors, reached an agreement with Clinton Group giving them four spots on its board of directors.
As part of the settlement agreement, Clinton Group, which beneficially owns approximately 6.9% of Wet Seal common stock, has terminated its consent solicitation. In addition, Jonathan Duskin, Sidney Horn, Hal Kahn and Henry Winterstern have resigned from the board of directors.
Clinton Group nominees joining the board include Dorrit Bern, Lynda Davey, Mindy Meads and John Mills. These new directors join Wet Seal’s board of directors, which includes three continuing directors: Kathy Bronstein, John Goodman and Ken Reiss.
As part of an orderly transition, former chairman of the board Hal Kahn has agreed to continue to serve the company as a consultant pursuant to his existing contract. The other three former directors will similarly assist with an orderly transition of the Board’s responsibilities.
“We are pleased that Wet Seal and Clinton Group have been able to resolve the consent solicitation. We believe that the agreement with Clinton Group is in the best interest of all Wet Seal shareholders,” said Ken Seipel, president and COO of Wet Seal. “This settlement will provide for a smooth and orderly transition of the board’s responsibilities, as well as a level of continuity for our employees.”
Wet Seal on Tuesday reported a 12.7% decline in September same-store sales.