US: Wet Seal urges shareholders to reject Clinton's plans
The Wet Seal has yet again urged its shareholders to reject Clinton Group's efforts to replace experienced board members with directors who allegedly lack the relevant experience.
The teen clothing retailer said it is not in the best interests of shareholders to change the board on the eve of the fourth quarter. Shareholders can reject Clinton's efforts by refusing to sign the white proxy or vote for the blue proxy, the company added.
"We strongly urge our shareholders to revoke or withhold their consent to allow Clinton Group to replace six of the seven current members of our board, including our two recently added members, with five of their own candidates who have no experience with Wet Seal or fast fashion," said Hal Kahn, chairman of the Wet Seal board.
Meanwhile, Joseph De Perio, senior portfolio manager of Clinton Group, said: "We believe change is needed in the Wet Seal boardroom.
"In our view, the best way to protect stockholder capital and execute a turnaround is to recruit and hire an excellent chief executive officer. The current board has not proven capable of hiring effective senior executives or determining or overseeing the optimal strategic direction for the company. The time for change is now."
The Wet Seal, Inc. Continues to Urge Shareholders to Reject Clinton Group’s Efforts to Replace Experienced Board Members with Hand-Picked Nominees
FOOTHILL RANCH, Calif.--(BUSINESS WIRE)--The Wet Seal, Inc. (Nasdaq: WTSLA), a leading specialty retailer to young women, reiterated today that it continues to urge its shareholders to reject efforts by Clinton Group to replace the company’s current experienced Directors with Clinton Group’s hand-picked nominees who lack relevant experience.
“Therefore, we strongly urge our shareholders to revoke or withhold their consent to allow Clinton Group to replace six of the seven current members of our Board, including our two recently added members, with five of their own candidates who have no experience with Wet Seal or fast fashion.”
“We believe that maintaining a degree of stability and continuity on our Board is critical as we approach the holiday season,” said Hal Kahn, Chairman of the Board of Wet Seal. “It is not in the best interests of the company and our shareholders to have an almost complete turnover of the Board on the eve of the fourth quarter. It would be extremely disruptive to our employees, customers and suppliers at a time when we are in the midst of implementing a return to our fast fashion strategy and beginning to gain traction in improving our performance.”
Mr. Kahn added, “Therefore, we strongly urge our shareholders to revoke or withhold their consent to allow Clinton Group to replace six of the seven current members of our Board, including our two recently added members, with five of their own candidates who have no experience with Wet Seal or fast fashion.”
Shareholders can reject Clinton Group’s efforts to replace experienced members of the Board with their hand-picked nominees by refusing to sign the white proxy or, alternatively, voting the BLUE proxy and ensuring that it is received by The Wet Seal as soon as possible.
If shareholders have any questions or need assistance in voting their shares, they should contact The Wet Seal’s proxy solicitor, MacKenzie Partners, Inc., at 212-929-5500.
About The Wet Seal, Inc.
Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailer of fashionable and contemporary apparel and accessory items. As of August 25, 2012, the Company operated a total of 551 stores in 47 states and Puerto Rico, including 469 Wet Seal stores and 82 Arden B stores. The Company's products can also be purchased online at www.wetseal.com or www.ardenb.com.
For more company information, visit www.wetsealinc.com.
Original source: http://www.businesswire.com/news/topix/20121003006679/en
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