The Wet Seal Inc.,a leading specialty retailer to young women,announced that it has reached an agreement on a complete settlement of all issues related to Clinton Group's consent solicitation.
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 employees."
The Company is filing the full text of the settlement agreement with the Securities and Exchange Commission.
Headquartered in Foothill Ranch,California,The Wet Seal,Inc.is a leading specialty retailer of fashionable and contemporary apparel and accessory items.
