Wet Seal, Bebe in Legal Tussle Over CEO
Two of the West Coast’s leading apparel specialty stores appear to be headed for a courtroom battle.
The Wet Seal Inc. filed a lawsuit in Orange County Superior Court on Feb. 23 against rival retailer Bebe Stores Inc. over Bebe’s hiring of a former Wet Seal executive.
Wet Seal is seeking injunctive relief and unspecified damages from Bebe and Greg Scott, the former president of Arden B., Wet Seal’s contemporary womenswear retail division, for allegedly violating terms within Scott’s employment contract with Wet Seal.
Wet Seal claimed that Scott and Bebe violated the non-compete and non-solicitation terms, as well as other provisions of the employment agreement. Wet Seal alleged that Scott and Bebe misappropriated confidential information belonging to Wet Seal and unlawfully solicited key employees of the Arden B. division.
Wet Seal said it began an arbitration proceeding against Scott in connection with the breach of his employment agreement. The company said it will seek to enforce all contractual relationships with current and former employees and protect its trade secrets and confidential information.
In response to the suit, Bebe issued a statement saying that it believes its actions have been lawful and that the company would vigorously defend itself.
Both chains offer contemporary women’s apparel and accessories. Bebe, based in Brisbane, Calif., operates 187 units. Wet Seal, based in Foothill Ranch, Calif., operates 99 Arden B. stores, 474 Wet Seal stores and 31 Zutopia stores. —R.M.
