Wet Seal chairperson steps down amid falling sales, departure of CEO

Less than 24 hours after news broke that Wet Seal's CEO John Goodman stepped down on Aug. 26, the company's chairwoman, Linda Davey, has announced plans to resign from her post, effective Oct. 1.

Davey will be replaced by company board member Adam Rothstein, according to Chain Store Age.

That's not the only loss facing Wet Seal (NASDAQ: WTSL). The company has lowered its projections for sales in the second quarter, with an adjusted loss of 15 cents per share, down from the previous estimates of a loss between nine and 12 cents per share.

The exacerbated outlook comes even after the retailer's launch of 30 new Wet Seal+ stores aimed at drawing in revenue from the growing underserved market of plus-sized women valued at roughly $16.2 billion at the end of fiscal 2013 in November.

The company announced a private placement of its Class A common stock, which is expected to yield gross proceeds of approximately $18.5 million. Story