US: Wet Seal reveals U-turn as directors resign
Teen retailer The Wet Seal has settled its proxy battle with dissident shareholder Clinton Group as its chairman and three directors have stepped down from the board.
Directors Jonathan Duskin, Sidney Horn and Henry Winterstern along with chairman Hal Kahn will be replaced by four of Clinton Group's nominees. Kahn will continue to serve as a consultant to the company.
Dorrit Bern, Lynda Davey, Mindy Meads and John Mills will join the retailer's board of directors, which includes three continuing directors: Kathy Bronstein, John Goodman and Ken Reiss.
Clinton Group, which owns 6.9% of Wet Seal common stock, has terminated its consent solicitation as part of the agreement.
"We believe that the agreement with Clinton Group is in the best interest of all Wet Seal shareholders," said Ken Seipel, president and COO of Wet Seal.
"This settlement will provide for a smooth and orderly transition of the board's responsibilities, as well as a level of continuity for our employees."
Up until today (5 October) The Wet Seal has been urging its shareholders to reject Clinton Group's efforts to push through the board restructure.
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