US: Wet Seal raises concerns about shareholder motives
Teen clothing retailer Wet Seal has urged its shareholders to reject Clinton Group's efforts to replace experienced directors with less qualified members during what the company described as a "critical time".
The retailer also raised questions about the dissident shareholder's recent trading of Wet Seal shares and reiterated concerns about Clinton Group's short-term motives.
In a letter to shareholders, Wet Seal said: "The fact that Clinton Group has been engaged in day trading is the latest evidence, and it should be a huge warning sign to our shareholders.
"It makes it even more unsurprising that Clinton Group has made a series of short-sighted demands to our board and then hastily assembled a slate of nominees with one dimensional retail experience.
Referring to the trading of Wet Seal shares, the letter noted: "One could speculate that Clinton is a seller when the stock trades above the $3.20 level. To trade like this during a consent solicitation process in which you are advocating for "long-term change" is strange behavior to say the least, and it shows Clinton Group's true colors as short-term investors with no long-term commitment to Wet Seal or its shareholders."
Last week, Clinton Group lashed back at claims by the teen retailer that it has been supported by two proxy advisers to keep its board.
The shareholder also revealed that Glass, Lewis & Co recommended that Wet Seal stockholders remove all four long-standing directors and replace them with independent professionals.
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US teen apparel retailer The Wet Seal has announced the resignation of Barbara Cook, its senior vice president of store operations, after less than two years in the post....
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