Apparel retailer's fate is Wet Seal(ed)
FOOTHILL RANCH, Calif. — Shortly after announcing the firing of its CEO, Wet Seal said it was looking into the possible sale of the company to the Clinton Group.
Wet Seal received a letter from the Clinton Group on July 23 and issued the following response:
"The Wet Seal Board of Directors appreciates input from all of its stockholders and is committed to maximizing stockholder value. The company has engaged in a series of discussions with the Clinton Group following their initial letter on June 15, and continues to review their recommendation regarding use of the company's capital. Wet Seal is committed to maintaining an active dialogue with its shareholders and, as always, will continue to consider ways to maximize value for all stockholders."
Wet Seal recently fired its CEO, Susan McGalla, and has begun a search for a new executive to head the struggling young women's apparel retailer.
Until such a person is found, Wet Seal president and COO and Steve Benrubi, CFO, will serve as co-principal execuitve officers and members of the office of the chairman, led by Hal Kahn, until a new CEO is elected by the board of directors.
For the month-to-date, Wet Seal's comps have declined between 13% and 14%.