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 commenting on Clinton Group’s misguided attempts to make wholesale changes to the company’s Board of Directors. A copy of the letter is attached.
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 August 25, 2012, the Company operated a total of 551 stores in 47 states and Puerto Rico, including 469 Wet Seal stores and 82 Arden B stores. The Company's products can also be purchased online at www.wetseal.com or www.ardenb.com.
For more company information, visit www.wetsealinc.com.Letter to Shareholders September 27, 2012 Dear Shareholder, Yesterday we announced that two leading independent proxy advisors, Institutional Shareholder Services (“ISS”) and Egan-Jones Proxy Services (“Egan-Jones”), both agreed with our recommendation that you should reject efforts by Clinton Group to replace six experienced members of your Board with new Directors hand-picked by a short-term dissident investor. The support and comments of these independent, third-party advisors, who work to help you make the most informed decision possible, provide further confirmation that a wholesale replacement of the Board is not in your best interests. It is abundantly clear that, consistent with their track record, Clinton Group is focused on short-term activism rather than the long-term interests of all shareholders. Neither Clinton Group nor any of its proposed Board nominees appear to have any specific strategy for the Wet Seal business, nor do they appear to have any direct teen, fast fashion experience. We question whether the highest quality Board members can be sourced by the Clinton Group given its reputation and in the context of a contentious consent solicitation process. Our Board clearly has demonstrated its desire and ability to attract compelling directors and, ultimately, top management talent that will lead directly to the creation of shareholder value.