Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Clinton Group Plans to Take The Wet Seal, Inc. (WTSL) Private; Picks Up the Stake

Greg Taxin‘s Clinton Group, has disclosed, in a newly amended filing that it is looking into financing alternatives, which will allow the fund to make an offer to acquire the equity of  The Wet Seal, Inc. (NASDAQ:WTSL), and take the company private.

The Wet Seal, Inc. (NASDAQ:WTSL)

Aside from that, Clinton also revealed slightly increasing its exposure to The Wet Seal, Inc. (NASDAQ:WTSL), currently owning around 6.9 million class A shares, versus 6.5 million, including options, held at the end of September. The new position also includes options to purchase 123,200 shares. The stake is activist by nature and amasses 8.1% of the company’s class A outstanding stock.

The Wet Seal, Inc. (NASDAQ:WTSL) is a small cap operator of retail stores selling apparel and accessories. For the third quarter, the company posted a decline in sales to $127.7 million, from $135.5 million a year ago. It also had a net loss of $14.9 million, equal to $0.18 per share, almost flat over the year. The stock of the company dropped by over 4.7% year-to-date.

Clinton Group is one of the largest shareholders of The Wet Seal, Inc. (NASDAQ:WTSL). Another one is Kendall Square Capital, managed by Jason F. Harris, which revealed, in its latest 13F, holding 1.7 million shares, worth $6.6 million. Some of the other “hedgies” hold less significant positions.

Clinton Group came on our radars a couple of months back, also because of its activist moves regarding ValueVision Media Inc (NASDAQ:VVTV). The fund formed an activist group with Carlo Cannell and his hedge fund Cannell Capital, and try to pursue some changes at the company, including changes applied to the company’s board.

The Wet Seal, Inc. (NASDAQ:WTSL) is the second-largest stake in Clinton’s equity portfolio, being outrun by Everyware Global, Inc. (NASDAQ:EVRY), in which the fund disclosed holding over 3.2 million shares, worth $36.9 million.

Disclosure: none

Recommended Reading:

Relational Investors Raises Holding in The Timken Company (TKR)

Biglari Capital Corp. Reveals Holding Almost 20% of Cracker Barrel Old Country Store, Inc. (CBRL)

Top 20 Hedge Funds with Highest Returns

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.