Falling sales, asset impairment charges, and unexpected legal costs led to third-quarter loss for retailer Wet Seal this November, but a bottom-down restructure may give the company a second wind.
Ken Seipel, Wet Seal’s president and COO, has left the company and won’t be replaced. 35 employees–32 from corporate, 3 in the field–have also been eliminated, which will save the retailer an estimated $3.8 million, before taxes, in 2013. Reduced store labor and “staffing efficiency measures” should save them another $2.5 million, and miscellaneous penny-pinching will save $2.1 million more.â€¨â€¨John Goodman, Wet Seal’s new CEO–formerly a board member, he was named CEO in early January–will become the principal leader of store operations, e-commerce and construction.
In a press release on Feb.1st, Goodman said that the “leaner and more nimble” company will be better prepared to “take quick and decisive actions to improve merchandising and increase efficiencies throughout all functional areas.” â€¨â€¨key words: Wet Seal, third quarter, asset impairment, Ken Seipel, John Goodman, CEO, COO, cost reduction, layoffs