American teen apparel retailer Wet Seal Inc. is in the crosshairs of its activist investor Clinton Group Inc. said Los Angeles Times in a report.

LA Times, citing Clinton Group's regulatory filing on Wednesday, said that the New York hedge fund is exploring financial alternatives to allow itself or one of its affiliates buy up Wet Seal's equity. Clinton Group is looking to acquire the California retailer's equity in a "going private" transaction. 

Clinton Group also said in the filing that it had boosted its stake in Wet Seal to 8.1%, the report stated.

The hedge fund has targeted Wet Seal for more than a year. Clinton Group only abandoned its proxy fight with the company last fall when it replaced four Wet Seal board members with its own nominees, LA Times said.

Wet Seal also swapped out chief executive Susan McGalla for its current boss John Goodman early this year, the report said.

Wet Seal's revenue sank nearly 6% to $127.7 million in the third quarter ended November 2. Its net loss deepened to $14.9 million from $14.8 million the previous quarter, LA Times wrote.