The Wet Seal, Inc. Announces Four Directors Resign and Are Replaced by Four Clinton Group Nominees
Agreement with Clinton Group Settles Consent Solicitation
FOOTHILL RANCH, Calif.--(BUSINESS WIRE)--
The Wet Seal, Inc. (Nasdaq: WTSLA), a leading specialty retailer to
young women, today announced that it has reached an agreement on a
complete settlement of all issues related to Clinton Group's consent
As part of the settlement agreement, Clinton Group, which beneficially
owns approximately 6.9% of Wet Seal common stock, has terminated its
consent solicitation. In addition, Jonathan Duskin, Sidney Horn, Hal
Kahn and Henry Winterstern have resigned from the Board of Directors.
Under the terms of the settlement agreement, Wet Seal has added as new
Directors four of Clinton Group's nominees: Dorrit Bern, Lynda Davey,
Mindy Meads and John Mills. These new Directors join Wet Seal's Board of
Directors, which includes three continuing Directors: Kathy Bronstein,
John Goodman and Ken Reiss.
As part of an orderly transition, former Chairman of the Board Hal Kahn
has agreed to continue to serve the company as a consultant pursuant to
his existing contract. The other three former Directors will similarly
assist with an orderly transition of the Board's responsibilities.
"We are pleased that Wet Seal and Clinton Group have been able to
resolve the consent solicitation. We believe that the agreement with
Clinton Group is in the best interest of all Wet Seal shareholders,"
said Ken Seipel, President and Chief Operating Officer 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
The Company is filing the full text of the settlement agreement with the
Securities and Exchange Commission.
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 September 29, 2012, the Company operated a total
of 554 stores in 47 states and Puerto Rico, including 473 Wet Seal
stores and 81 Arden B stores. The Company's products can also be
purchased online at www.wetseal.com
For more Company information, visit www.wetsealinc.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995: This news release contains forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to,
statements that relate to the intent, belief, plans or expectations of
the Company or its management. All forward-looking statements made by
the Company involve material risks and uncertainties and are subject to
change based on factors beyond the Company's control. Such factors
include, but are not limited to, those described in the Company's
filings with the Securities and Exchange Commission.
The Wet Seal, Inc.
Steve Benrubi, 949-699-3947
Steven Goldberg/Kate Foley
Dan Burch/Charlie Koons
Source: The Wet Seal, Inc.
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