NEW YORK, Sept. 27, 2012 /PRNewswire/ -- Clinton Group, Inc. ("Clinton Group") today announced that Institutional Shareholder Services ("ISS") and other independent research analysts recommend that Wet Seal, Inc. (Nasdaq: WTSLA) ("Wet Seal" or the "Company") stockholders support change to the Company's Board of Directors.
ISS recommends its institutional investor clients support Clinton Group's proposal to elect two highly qualified independent professionals, Lynda K. Davey and Mindy C. Meads, to the Wet Seal Board in place of incumbent directors Sidney M. Horn and Henry D. Winterstern. Noting that Clinton Group had "made a compelling case for a change," ISS specifically recommends that Wet Seal stockholders "do not vote" for the status quo, as the Company has advocated.
"We are disappointed that the Company sought in its press release yesterday to mischaracterize ISS' recommendation," said Gregory P. Taxin, Managing Director of Clinton Group. "ISS quite rightly has advised its clients that change is needed on the Wet Seal Board and that stockholders should vote on our white consent solicitation card."
Investment analysts agree. Jeff Van Sinderen has been covering the Wet Seal for nine years at B. Riley & Co., LLC. Mr. Van Sinderen wrote to his institutional investor clients that "this situation calls for a sweeping board change and a swift implementation of a new skilled team." He continued, "[i]t is time for shareholders to act swiftly to replace the board." (1)Similarly, Eric Beder of Brean Murray Carret & Co. has said that "a new Board of Directors" could be a "positive catalyst" for the stock. (2) "We appreciate the support of these independent research analysts," said Mr. Taxin. "We believe Wet Seal stockholders should indeed support our proposals and upgrade the Board of the Wet Seal."