Activist shareholder Clinton Group Inc. is exploring the possibility of buying Wet Seal Inc.
The New York-based investment firm said in a filing with the Securities and Exchange Commission that it was looking into taking the teen and contemporary retailer private. Clinton Group also said in the filing that it now has an 8.1% stake in the company, up from 7.82%.
The firm has been a vocal critic of the company since last year, and its complaints amid a challenging business environment contributed to the firing of former Chief Executive Susan McGalla and an overhaul of the board.
The retailer, which operates 471 Wet Seal stores for teens and 59 Arden B stores for young women, has been grappling for a turnaround for several years and expects a loss in the range of $11.76 million to $14.28 million in the January quarter. Analysts expected a profit of $840,000.
―Kari Hamanaka
