Teen apparel retailer The Wet Seal is looking for a new chief executive officer after the company terminated Susan McGalla's employment agreement today (23 July).

The Wet Seal has formed an office of the chairman, which will be led by Hal Kahn, the company's non-executive chairman of the board, while a replacement is found.

In addition, president and COO Ken Seipel and CFO Steve Benrubi will serve as co-principal executives and members of the office of the chairman, while a search is conducted.

The retailer's comparable store sales for July declined 13-14%. As a result, the company forecasts second quarter comparable store sales to fall 10-11%, which is at the low end of its initial guidance range.

The company has also updated its earnings guidance for the second quarter. The Wet Seal now expects a loss before non-cash asset impairment and CEO severance costs to be in the range of $0.06 and $0.07 per diluted share, compared to its initial guidance loss of between $0.03 and $0.06.

McGalla joined Wet Seal last January, after resigning from her role as president and chief merchandising officer of American Eagle Outfitters.