The Wet Seal, Inc. (Nasdaq: WTSLA), a leading specialty retailer to young women, announced today that it has issued a letter to the company’s shareholders, updating them on recent positive developments at the company and urging them to reject Clinton Group’s efforts to replace experienced members of the Board. A copy of the letter is attached.
Today the company also filed its definitive revocation statement with the SEC. A copy of the statement is available at www.wetsealinc.com.
The shareholder letter highlights the Board’s recent steps to address shareholder concerns, including the addition of new Board members with successful fast fashion expertise, changes in Board structure and compensation, the termination of the temporary shareholder rights plan, and the advancement of the date of the annual shareholder meeting.
The letter also discusses the Board’s ongoing efforts to engage Clinton Group in a constructive dialogue to achieve a compromise that is in the best interests of all shareholders. Clinton Group’s unwillingness to compromise and their record of short-term activism suggest that it is not acting in the best interest of all shareholders. Moreover, the current Board has extensive teen retail and fast fashion experience and a clear strategy already in place. In stark contrast, Clinton Group simply does not have any semblance of a business strategy, let alone one that will help improve business performance and enhance the company’s long-term value for shareholders. Finally, their nominees do not appear to have any direct teen or fast fashion expertise.The Board strongly urges shareholders to reject Clinton Group’s proposal to replace experienced members of the Board with Clinton’s slate of 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.