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Guess plunges as it names CEO, keeps Paul Marciano as creative head
[BOSTON] Guess? Inc. co-founder Paul Marciano, who resigned as chairman of the apparel company last year amid a sexual-harassment probe, will stay on as chief creative officer after all.
Marciano was supposed to step down from that role this month, while retaining a seat on the board. Guess didn't immediately return a request for comment on the change of plans.
The company also said Chief Executive Officer Victor Herrero is leaving the company as of Feb. 2 and will be replaced by Carlos Alberini, who had served as president and operating chief from 2000 to 2010. Maurice Marciano, the current chairman and brother of Paul, will serve as acting CEO until Alberini, currently chairman and CEO of Lucky Brand, leaves his current role.
The shares fell as much as 15 per cent to US$19.12 in New York Monday, the biggest intraday slide in almost eight months. They had risen 8 per cent this year through Friday's close, after jumping 23 per cent last year.
The investigation into Paul Marciano's behavior concluded that while many of the allegations against him couldn't be corroborated, he had put himself in situations where such allegations might occur, the company said in a June filing. Among the allegations were claims of "inappropriate comments and texts, and unwanted advances including kissing and groping."
Marciano and Guess also reached non-confidential settlement agreements with five individuals totaling US$500,000 to avoid "the cost of litigation and without admitting liability or fault," the company said.