Deena Varshavskaya, Nancy Lublin and Adam Rothstein have been appointed directors of The Wet Seal Inc., expanding the board to nine members, boosting its focus on digital technologies and signaling a meeting of the minds with activist investor The Clinton Group.
Lynda Davey, chairman of Wet Seal, said the three “bring significant and unique talents and expertise to Wet Seal. Their experience in e-commerce and social media, combined with their knowledge of our target demographic and Mr. Rothstein’s background as a shareholder representative, should provide Wet Seal with a remarkable amount of insight and perspective.”
Wet Seal’s board contracted to six members from seven in January, when Mindy Meads resigned upon her appointment as chief executive officer of Calypso St. Barth.
With the three new appointments, Clinton Group, owner of 8.1 percent of Wet Seal’s outstanding stock, has agreed to vote its shares in favor of all nominees at the company’s annual meeting, which is scheduled for May 22. In addition to the new designees, the nominees are Davey; John Goodman, ceo of Wet Seal; John Mills, recently appointed vice chairman of the board; Dorrit Bern; Kathy Bronstein, and Kenneth Reiss.
Clinton has pushed for changes to the company’s board and even for a sale of the firm since 2012.
Varshavskaya is founder and ceo of Wanelo, a social shopping platform. Lublin is a strategist with expertise in teen branding and ceo of DoSomething.org, an online source for social change.
Rothstein is general partner at Disrupt-ive Technologies Partners, an early-stage venture fund, and lead independent adviser to Gans Family Investments and the Franklin-Eckstein Family for its public and private equity portfolios. He previously served as chief investment officer of Intana Management.
Goodman noted, “We are in the midst of expanding our e-commerce, social media and mobile presence. Our three new independent directors all have specific expertise, credibility and networks to help guide the company as we build out our online and mobile platforms. We are very fortunate to have them joining the board at this critical juncture.”
Shares of Wet Seal rose 3 cents, or 1.6 percent, to $1.91 in Nasdaq trading Monday.