Clinton Advances Wet Seal Board Proposal to SECSunday, September 2, 2012
A major shareholder of Foothill Ranch-based teen retailer Wet Seal Inc. filed documents with the Securities and Exchange Commission last week related to its proposed removal of four board members.
New York-based asset management firm Clinton Group Inc. proposed four candidates of its own for the board seats and a fifth person to fill a vacant seat left open after the July departure of former Chief Executive Susan McGalla. Clinton owns 6.62% of Wet Seal stock.
“Our sole objective is to put in place a new, completely independent board that can execute a strategy that will lead to a turnaround in financial performance and the realization of Wet Seal’s potential,” Clinton Group said in its filing.
Wet Seal operates 469 Wet Seal stores for teen girls and 82 Arden B stores aimed at young women.
At least half of Wet Seal shareholders must consent to Clinton Group’s proposals in order for action to be taken.