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Wednesday, October 3, 2012

Wet Seal asks shareholders to thwart boardroom coup attempt, (NASDAQ: WTSLA)

Struggling clothing retailer Wet Seal Inc urged its shareholders on Wednesday to reject efforts by its third-largest investor Clinton Group to gain control of the board, saying the company needed the experience of its current directors.Clinton, which holds some 7 percent of Wet Seal, said the seller of young women's apparel had earlier in the day backtracked on an offer, made via an investment banker, for four directors to resign in exchange for the activist investor ending its move.Clinton has argued that Wet Seal's performance over the last five years has been unnecessarily poor, and that the board has made missteps in its hiring and strategy.The company's board has eight seats, of which one is vacant.

The Wet Seal, Inc. is a specialty retailer operating stores selling apparel and accessory items designed for female customers aged 15 to 39 years old. Shares of WTSLA fell by 0.63% or $-0.02/share to $3.16. In the past year, the shares have traded as low as $2.42 and as high as $4.63. On average, 1136090 shares of WTSLA exchange hands on a given day and today's volume is recorded at 4921010.