Foothill Ranch, Calif. -- The Wet Seal said that two independent proxy advisors, Institutional Shareholder Services and Egan-Jones Proxy Services, recommended that the chain’s shareholders reject efforts by Clinton Group to replace six members of the company’s board of directors.
The Clinton Group, which has a 7% stake in the chain, previously urged the chain's board to sell the company. Last week, it disclosed in a filing with the Securities and Exchange Commission that it would nominate a slate of six directors to replace all but one of Wet Seal’s board. Wet Seal has asked shareholders to retain all five continuing directors and two new members.
On Wednesday, a firm that evaluates proxy filings, Egan-Jones Proxy Services, also recommended shareholders give thumbs down to the nominees.
A second proxy firm, Institutional Shareholder Services, recommended shareholders elect two of the Clinton Group's slate to replace Wet Seal's independent directors, but reject the others.
Wet Seal chairman Hal Kahn commented: “We are pleased that both Egan-Jones and ISS have recommended that our shareholders reject Clinton Group’s consent solicitation to make wholesale changes to the current experienced Board. With the recent addition of Kathy Bronstein and John Goodman, the Board has added two new strong Directors with relevant teen retailing experience who complement the continuing Board’s strong mix of skills and experience across all aspects of the business and who will assist us as we implement our fast fashion strategy.”