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Wet Seal Gets Retail, Fashion Vet as CEO

Foothill Ranch-based teen retailer Wet Seal Inc. has hired a veteran retail executive with experience in women’s fashion as chief executive.

The choice of John D. Goodman ends a search that began in July following the ouster of former Chief Executive Susan McGalla.

Goodman counts experience with Hoffman Estates, Ill.-based Sears Holdings Corp. and Charlotte Russe Inc. in San Diego, among other executive positions. He takes the helm as Wet Seal continues a years-long bid for a turnaround.

The company operates a chain of 475 Wet Seal stores for teens and 80 Arden B stores for young women.

Goodman recently joined the company’s board of directors in September, the same time former Wet Seal Chief Executive Kathy Bronstein also was appointed to the board.

Goodman previously served as executive vice president and chief apparel and home officer of Sears Holdings, where he worked with the Sears and Kmart brands. He also is credited with helping turn around the juniors retailer Charlotte Russe, which currently counts more than 500 stores in the U.S. and Puerto Rico, during an earlier career stop.

Wet Seal Chairperson Lynda Davey said the board of the retailer found Goodman’s “energy and passion for the fashion industry and, in particular, his understanding of the junior customer perfectly aligned with the attributes we were seeking in a chief executive officer.

“As an active Wet Seal Director, John has already developed a strong working relationship with the executive team,” Davey said. “We feel certain that this will expedite the improvement in operating performance and the prospects for profitable growth.”

Goodman’s hiring caps a rugged stretch for the company that followed McGalla’s firing, which was followed by calls from major shareholder Clinton Group Inc. of New York for the removal and replacement of four Wet Seal board members. Former Chairman Hal Kahn, along with three directors, ultimately resigned in October as part of a resolution between Wet Seal and Clinton Group.

Wet Seal has been reworking its turnaround strategy with fast-fashion merchandising, reversing a previous plan set into motion under McGalla, who set out to cut down on discounting.

Wet Seal has narrowed its monthly same-store sales losses since September. A setback was seen in December with a 9.7% fall in same-store sales.

—Kari Hamanaka

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