The investigation into the alleged misconduct of Guess? Inc. chairman Paul Marciano could have long-lasting financial implications for the company, new documents reveal.
According to the company's Form 10-K — an annual report filed with the Securities & Exchange Commission — they acknowledge that a "committee of the Board of Directors is conducting an investigation of allegations of improper conduct against Paul Marciano, our Executive Chairman and Chief Creative Officer. The investigation is being continued and completed solely by Glaser Weil LLP as independent counsel on behalf of a Special Committee of the Board of Directors."
They go on to say, "Mr. Marciano relinquished his day-to-day responsibilities to the Company, on an unpaid basis with the agreement of the Board of Directors. Although we believe we have a strong management team with relevant industry expertise, the extended loss of the services of Mr. Marciano and failure to effectively identify and attract a suitable successor could materially harm our business."
The section about the investigation was filed under "Risk Factors," which also included items about weather, distribution, and privacy breaches, among others.
Guess? Inc. filed this report just last week.
The company made the announcement on February 7 that they formed a special committee to oversee an “ongoing investigation” into recent allegations against Marciano.
Executives at Guess have also been accused of facilitating his improper behavior.