Teen retailer Wet Seal Inc. is firing CEO Susan McGalla due to a decline in company sales. She will be dismissed from her role effective immediately, and the company currently has no replacement for the leading position.
McGalla served as Wet Seal's CEO since January 2011 and was supposed to remain in the position until August 2014.
The company started a search for a replacement on Monday. While looking for a new CEO, Wet Seal's chairman, president and chief financial officer will oversee the company.
In addition to fallen sales, Wet Seal is also dealing with a federal racial discrimination lawsuit, however CFO Steven Benrubi said to The Associated Press that the dismissal was "strictly due to the financial performance of the company."
Wet Seal has faced a difficult time stocking its 550 stores properly to bring in enough customers and its stock has dropped its value over the last 12 months.
In May, the company planned on closing Arden B stores and several of its Wet Seal stores in order to manage costs as sales fell.
Revenue in Wet Seal stores declined 8.8 percent in May and 9 percent in June. The company also predicts that stores opened for at least a year will drop 10 to 11 percent in the period.
Prior to her role as Wet Seal CEO, McGalla served as president and chief merchandising officer of teen retailer American Eagle Outfitters Inc.
While Wet Seal looks for someone to take on McGalla's previous role as CEO, the company has formed an Office of the Chairman, led by Chairman Hal Kahn, President and Chief Operating Officer Ken Seipel and Benrubi, to run the company in the meantime.