Wet Seal in talks with Clinton Group
Foothill Ranch, Calif. -- One day after releasing its CEO, teen retailer Wet Seal confirmed it is in talks with major shareholder Clinton Group regarding a potential sale of the company.
Wet Seal fired chief executive Susan McGalla on Monday, citing downward spiraling sales during her 11-month tenure. Clinton Group then ramped up its insistence that Wet Seal put itself up for sale.
Wet Seal maintains it is reviewing Clinton Group's recommendation regarding its use of capital, and said it has been in talks with the shareholder group since it first sent a letter to the retailer in mid-June.
“The Wet Seal Board of Directors appreciates input from all of its stockholders and is committed to maximizing stockholder value,” the retailer said in a statement. “Wet Seal is committed to maintaining an active dialogue with its shareholders and, as always, will continue to consider ways to maximize value for all stockholders.”