Activists Call for Guess Founders to Step Down From Denim Retailer’s Board

Activist partners Legion Partners Asset Management have called on fashion brand and retailer Guess’ board of directors to remove Co-Founders and Directors Paul Marciano and Maurice Marciano after “more than a decade [of] a pattern of appalling sexual assault and harassment allegations,” according to a Tuesday (Feb. 8) press release.

Legion Partners Managing Directors Chris Kiper and Ted White outlined the history of allegations against the brothers in a letter, with the allegations of misconduct against Paul Marciano and a lack of action or response by Maurice, who “appeared to turn a blind eye” to his brother’s alleged actions, the release stated.

“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,” according to the release.

Kiper and White wrote in their letter that they “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 chief creative officer of the company. As human beings, we are appalled.”

Paul Marciano has been accused of sexual misconduct by at least 11 women since 2009, the letter stated, adding the alleged incidents go back to the 1980s.

Kiper and White characterized Paul Marciano in the letter as “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,” including allegations by four women in the past year.

Guess’ insurance carrier recently sued to absolve itself of any responsibility of covering claims related to Paul Marciano’s alleged “pattern of wrongful acts” after a lawsuit filed in January 2021 by a former model who accused him of rape and charged Guess of enabling his behavior for years, the letter stated.

Last February, Guess was the victim of a data breach that resulted in the personal information of about 1,300 of its customers in the Americas, Europe and Asia. Its investigation concluded in late May, and all affected parties were notified by early June.

Read more: Fashion Brand Guess Data Breach Impacts Customer Info