The Wet Seal, Inc., a leading specialty retailer to young women, today announced a corporate workforce reduction and certain other cost-saving and investment initiatives. The Company also announced the resignation of President and Chief Operating Officer
Workforce Reduction and Other Cost-Saving and Investment Initiatives
As part of a strategic business review, the Company has implemented a workforce reduction of 35 positions, of which a portion are currently vacant positions, to align with its current business requirements. Thirty-two positions were eliminated in the Company's corporate offices and three were eliminated in the field. Including the additional impact of eliminating the Chief Operating Officer position, as discussed further below, the workforce reductions are expected to result in annualized pre-tax savings of approximately
The Company also announced planned fiscal 2013 cost reductions of approximately
In the fourth quarter of fiscal 2012, the Company also executed early lease terminations for two Arden B stores that had lease terms extending beyond fiscal 2013. As a result, these stores will close at the end of fiscal 2012. These stores incurred fiscal 2012 operating losses of approximately
Beginning in late fiscal 2012, in collaboration with the
Resignation of President and Chief Operating Officer
Concurrently, the Company has eliminated the Chief Operating Officer position.