The activist Clinton Group has successfully shaken up the board at The Wet Seal Inc.
The Foothill Ranch, Calif.-based specialty chain said four members of its board had resigned, including chairman Hal Kahn, Jonathan Duskin, Sidney Horn and Henry Winterstern.
Clinton owns 6.9 percent of Wet Seal and has been pushing for the company to change its leadership and consider selling itself.
Wet Seal stocked the board with Clinton’s chosen slate of directors: Dorrit Bern, Lynda Davey, Mindy Meads and John Mills. They join the company’s three continuing directors, Kathy Bronstein, John Goodman and Ken Reiss.
Kahn, who has had to be a very active chairman during his tenure, will serve as a consultant under his existing contract. The company is still looking for a chief executive officer following Susan McGalla’s departure in July.
“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 the 554-door chain. “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.”