Wet Seal CEO steps down amid declining same-store sales

Sept 3 (Reuters) - Struggling apparel retailer Wet Seal Inc brought back former Chief Executive Edmond Thomas at the helm to replace John Goodman amid mounting losses and declining same-store sales.

Wet Seal shares lost a quarter of their value around midday, after being halted since Tuesday evening.

Gregory Taxin, president of activist investor Clinton Group - one of Wet Seal's largest shareholders, which has pressured it to improve performance - will join the board, the company said.

Clinton Group held 4.58 percent of Wet Seal, according to a June 30 filing.

The women's apparel company, which has posted three quarterly losses in a row, forecast a second-quarter loss of 26 cents per share.

Analysts on average were expecting a loss of 10 cents per share, according to Thomson Reuters I/B/E/S.

(Reporting by Shailaja Sharma in Bangalore; Editing by Joyjeet Das)