Activist Investors Calls For Removal Of Guess’ Co-Founders
Activist investor, Legion Partners, wants to remove Guess’ co-founders from the company’s board in response to sexual misconduct allegations.
The investment firm, which has a 2.5% stake in Guess, argues that the involvement of co-founders Paul and Maurice Marciano in the company’s business is casting a shadow on the brand.
The call to remove the two brothers comes after a model accused Paul Marciano of sexually assaulting her last year. Model Kate Upton also accused him of sexually harassing her in 2018, which led him to resign from his position as the company’s executive chair in June 2018. The position was then filled by his brother, Maurice, according to Reuters.
Legion Partners wants the removal of Paul for his behavior and Maurice for ignoring the matter.
The two brothers currently hold seats on the $1.4 billion company’s board of eight members, while Paul continues to serve as the chief creative officer for the brand. They own a combined 38% stake in the company. Guess hired Carlos Alberini as its new chief executive three years ago.
Alberini is credited with making key changes such as cost-cutting measures, which have been received well by the activist investment firm. Still, Guess’ stock value has declined by 12% over the past year — something Legion is hoping to change with the removal of the Marciano brothers.
Originally published at https://retailbum.com on February 9, 2022.