Photo: Wet Seat
Wet Seal has fired its CEO Susan McGalla after just 11 months on the job at the teen retailer, reports Reuters.She oversaw 11 straight months of declining same-store sales, and one of Wet Seal’s top shareholders, a hedge fund called Clinton Group, is now calling for the company to be sold.
Wet Seal’s stock has dropped nearly 50 per cent in the past year.
Clinton Group senior portfolio manager Joseph DePerio described McGalla’s dismissal as, “a good first step,” and said, “I don’t trust this board to make the right decisions to hire a new CEO and to mentor the CEO,” according to Dana Mattioli at the Wall Street Journal.
The WSJ also reports that McGalla sent an email to employees, saying that her turnaround plan was supposed to take between two to three years, but she was “respectful of the board’s decision.”
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