Thomas to Exit The Wet Seal
Foothill Ranch, Calif.–based The Wet Seal Inc. will soon have a new chief. Edmond S. Thomas—the company’s president, chief executive officer and director—announced plans not to renew his contract, which expires on Oct. 8. Thomas told the company’s board of directors he is willing to remain with the company in a transitional role if a successor has not been found by then.
“Ed led The Wet Seal during a difficult economic period,” said Harold D. Kahn, chairman of the board of directors, in a statement. “He leaves us with a strong foundation and exceptional balance sheet. We look forward to working with Ed during the transition period following the end of his term. We also plan to seek Ed’s counsel in our deliberations to find a fitting successor.”
This was Thomas’ second stint at The Wet Seal. He has been president and chief operating officer of the teen retail chain from 1992 to 2000. After serving as president and co-CEO of Tilly’s, he returned to The Wet Seal in 2007.
The Wet Seal’s expansion plans and new company strategies set in motion by Thomas will not be affected by his departure, according to Liz Pierce, a retail analyst for Newport Beach, Calif.–based Roth Capital Partners.
In a research note published July 28, she wrote that The Wet Seal’s board will continue to be fully committed to Thomas’ plans for store expansion and new projects. The transition period until Thomas’ replacement is named is expected to be smooth because Chief Financial Officer Steve Benrubi and the company’s chief merchants will continue to serve the company and implement Thomas’ expansion plan.
“[The Wet Seal] remains a compelling growth story given its fast fashion and value-oriented market proposition,” Pierce wrote.
On June 25, The Wet Seal celebrated the grand opening of its Blink denim pop-up shop at the Galleria at Tyler mall in Riverside, Calif. The 1,600-square-foot store features the latest in denim trends, as well as a small assortment of fashion tops and accessories. In a recent interview, Thomas said the company has been discussing making the pop-up shop permanent and perhaps building other Blink locations.
For its guidance for its second fiscal quarter, which will be reported Aug. 19, The Wet Seal forecast opening nine Wet Seal stores and closing two of its Arden B stores.
In a March 26 conference call, Thomas said he planned to reopen Wet Seal locations in malls where the juniors retailer had closed in 2005. Thomas forecast the company could eventually double the current size of the fleet of Wet Seals to more than 700 stores in malls across the United States.—Andrew Asch
