Wet Seal shareholder calling for sale of the company
After the firing of former Wet Seal CEO Susan McGalla, the careworn women's apparel retailer has begun the search for its next chief executive officer. However, in a statement today, Wet Seal's president and COO, Steve Benrubi, said the company might be looking into a possible sale after receiving a letter from shareholder the Clinton Group.
"The Wet Seal Board of Directors appreciates input from all of its stockholders and is committed to maximizing stockholder value. The company has engaged in a series of discussions with the Clinton Group following their initial letter on June 15," said Benrubi.
The struggling apparel company has seen declines in its comparable-store sales from 13 percent to 14 percent this month alone. According to CBS News, The Clinton Group owns 4.25 percent of Wet Seal's stock and has been urging the company to sell instead of searching for a new CEO. According to B. Riley & Co's chief analyst, Jeff Van Sinderen, the sale of the company could be imminent due to a shortage of CEO candidates for the fledgling corporation.
As Wet Seal revamps its image and operational management, it could benefit from retail solutions, such as the applications offered by Retail Pro. These POS software packages allow large stores to keep up with inventory in order to offer optimal customer experiences.
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