Foothill Ranch, Calif. -- Wet Seal Chairperson Lynda Davey is resigning from her post, effective Oct. 1. The announcement of her resignation comes on the heels of the departure of the troubled teen retailer’s CEO. Davey will be replaced by Adam Rothstein.
The company also lowered its second-quarter forecast. Wet Seal now foresees a second-quarter adjusted loss of 15 cents per share. Its prior outlook was for an adjusted loss between 9 cents and 12 cents per share. Revenue totaled $121.2 million. Analysts polled by FactSet expected a loss of 10 cents per share on revenue of $124.3 million.
Wet Seal also announced a private placement in which it expects gross proceeds of approximately $18.5 million. In addition, it plans a rights offering between $25 million and $30 million.