Dallas, Texas 12/30/2013 (FINANCIALSTRENDS) – The famous investor Clinton Group Inc. which has been agitating for some changes at the apparel retailer The Wet Seal, Inc. (NASDAQ:WTSL) for last almost one year is now planning to take the company private. Clinton Group Inc. is a famous New York based fund and has been continuously throwing tantrums at the retailer company WTSL. Wet Seal which has been hit hard by the less sales for straight seven quarters and its shares have dropped almost 47 percent since 1st July.
The shares of Wet Seal opened at around $2.44 and closed at around $ 2.47. The overall gain that was seen during the entire day was of 2.92% for that very particular day. For last few months that cash flow of the company has started deteriorating and many industry insiders are saying that these might be the sign of some more dangerous news coming very soon.
Overview of The Wet Seal, Inc. (NASDAQ:WTSL)
The Wet Seal Inc. is a specialty retailer and operates different stores that sell different fashionable items and contemporary and accessory items for mostly female customers. The company operates in two different segments that are Wet Seal and Arden B.
Many industry analysts are saying that Wet Seal is now looking like J.C. Penney. The fourth quarter earnings of the Wet Seal are expected to be little disheartening and substantial decline in their forecasted revenue is expected. All this looks like J.C. Penney because the revenue and earnings also feel for JCP and the coming months are going to pose some big challenges for the company. Though the operating cash flow from 2010 to 2012 has improved to some extent but that is also not acting in favor of the company. Now company has to work real hard so that it can save itself from insolvency troubles.
