Guess Investor Wants Marciano Brothers Ousted
An investor in the famous fashion retail chain Guess’, Inc (GES), is leading the claims to remove co-founders of the company, the Marciano brothers, from the board of directors after repeated claims of sexual allegations surfacing against the clothing mogul, reported the Journal.
Legion Partners Asset Management LLC, a 2.5% stakeholder in the company wants the company to take action against Paul Marciano and his brother, Maurice Marciano. Incidentally, Paul is also the chief creative officer of the company.
The managing directors of Legion, Chris Kiper and Ted White claimed that there have been numerous allegations of sexual harassment against the former chairman, Paul Marciano which puts a question mark on the credibility of the board. Maurice is equally to be blamed for his apparent negligence in handling the matter.. “Legion Partners believes that it is the responsibility of the rest of the board to finally take action and immediately remove Paul Marciano from his executive role and both brothers from the board — or at the very least commit that they will not be renominated at the upcoming 2022 annual meeting of shareholders,” the company stated in its press release.
The Legion heads also added that the investors are “deeply concerned by the lack of good judgment the Board of Directors of Guess has displayed in continuing to allow Co-Founder Paul Marciano to serve as a board member and as a chief creative officer of the company. As human beings, we are appalled.”
According to the letter, Paul is a “serial predator” who “has used his positions of power and authority at Guess to harass, sexually assault and otherwise take advantage of young female models.” The number of allegations against Paul is eleven since 2009, including four women who lodged their complaints last year.
Early last year, a model sued the company for enabling Paul to carry on with his disgraceful acts which resulted in Guess’ insurance carrier absolving itself from settlements related to Paul Marciano’s misdeeds.
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