U.S. Markets closed

Wet Seal hires John Goodman as CEO

FOOTHILLS RANCH, Calif. (AP) -- The Wet Seal Inc. said that it has named retail-industry veteran John D. Goodman as its new CEO, effective Monday.

The teen clothing retailer, based in Foothills Ranch, Calif., fired its former CEO, Susan McGalla, in July amid falling sales.

The company has been battered for some time with weak sales due to a selection at stores that just didn't meet the fickle teen shopper's tastes. It also has faced a proxy battle with a key investment group that is unhappy with its financial performance.

Wet Seal said Goodman is signed to a contract through 2016. He initially joined the company as a member of the board of directors in September.

Goodman worked most recently as executive vice president and chief apparel and home officer at Sears Holdings Corp., where he oversaw both the Sears and Kmart brands. He has worked at a number of retailers, including Gap Inc., Levi Strauss & Co., Mervyn's, and Bloomingdale's. He helped lead a turnaround at Charlotte Russe, another teen retailer, in 2008 and 2009.

Wet Seal said that Goodman's background, energy and passion are what the company was looking for.

The company operates 555 of its namesake stores and Arden B. stores across the country.

Shares fell 2 cents to close the day at $2.70, in line with a broader market drop. The company's volatile stock has traded between $2.42 and $3.73 in the past 52 weeks.