Wet Seal Chief Bronstein Gone
Kathy Bronstein, longtime chief executive officer of the Orange County, Calif.-based retail chain Wet Seal, Inc. has been “relieved of her duties,” the company said. She will be succeeded for an interim period by company chairman Irv Teitelbaum.
Bronstein has been with the 606-unit womenswear chain since 1985 when she was hired as a merchandise manager. Wet Seal executives did not elaborate on her departure, but the company has been struggling financially, posting a net loss of 8 cents per share compared to 22 cents per share for the third quarter, its last reporting period. Year-to-date figures were also down to 32 cents from 52 cents per share.
Wedbush Morgan analyst Elizabeth Pierce, who is based in Los Angeles, said Bronstein’s departure caught the financial community a little off guard, but was not totally unexpected.
“The results in the back half of the year have not been the greatest, and the board probably wanted a fresh perspective,” said Pierce. “Kathy’s a great merchandiser and certainly knows the company’s target demographic, but maybe they just wanted some new blood.”
Teitelbaum in a statement said Bronstein was instrumental in the company’s growth over the years.
“As a visionary in the world of young women’s ready-to-wear fashion, Kathy has led the company to a position of impressive growth and achievement,” he said. “As we move forward, this company remains committed to our focus on providing fashion-forward quality merchandise at affordable prices for young women. Our aim is to surprise and excite shoppers with fashion newness.”
Teitelbaum has served as chairman since June 1984. He is also chairman, chief executive officer and cofounder of La Senza Corporation, a Canadian retail company with more than 460 stores of women’s apparel and lingerie, trading on the Toronto Stock Exchange. Headquartered in Foothill Ranch,Wet Seal operates 606 stores in 46 states, the District of Columbia and Puerto Rico, including 476 Wet Seal stores, 100 Arden B. stores and 30 Zutopia stores.
