Fund wants Guess founders off board amid sexual misconduct allegations
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Clothing line poses as they arrive for their 20th Anniversary
Los Angeles party May 9, 2002 The French-born brothers were originally there.
In Los Angeles, the company was established.
BOSTON (Reuters), – A activist investment firm seeks Guess? Inc According to a source, the brothers co-founded the store. They are claiming that one brother has been accused of sexual misconduct.
Legion Partners owns 2.5% in Guess (NYSE:). The person stated that co-founders Maurice and Paul Marciano’s involvement with Guess casts doubt on the company’s operations, even recent positive actions by CEO Carlos Alberini.
Paul Marciano was sued by Kate Upton, a model that accused him sexually of assaulting her. In 2018, Upton also publicly accused Marciano of sexual harassment. His brother Maurice succeeded him as Guess board executive chairman in June 2018.
Guess and Paul Marciano, at the time, signed non-confidential settlement arrangements for $500,000 with five persons who accused them of improper conduct.
They are both directors of Guess’s eight-member board. Paul is also the chief creative officer. Legion believes both should go. Maurice, for not listening to it and Paul because of his behaviour.
The Wall Street Journal reported this story for the first time on Monday.
Guess’s representative, valued at $1.4 Billion, didn’t immediately reply to our request for comment.
According to Refinitiv data, the brothers created the company in 1981. They own 38%. The stock price of the company has fallen by about 12% in the past year.
Carlos Alberini was brought in by the company 3 years ago. Legion liked the cost-cutting measures he implemented, according to the source.
Legion has previously pushed for changes at retailers Kohl’s (NYSE:) and Bed Bath & Beyond (NASDAQ:) and places a heavy emphasis on corporate governance. Investors in Legion claim that Legion has returned 35% since 2021.
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