Guess co-founder resigns after misconduct probe

LOS ANGELES — Guess Inc.’s cofounder, Paul Marciano, is stepping down after the completion of a company-commissioned investigation into allegations of sexual harassment and assault.

The Los Angeles-based fashion company revealed in a filing with the U.S. Securities and Exchange Commission that Marciano is resigning immediately as executive chairman of the Guess board, and his brother Maurice Marciano, another company co-founder, will take over.

“The investigation found that on certain occasions [Paul] Marciano exercised poor judgment in his communications with models and photographers and in placing himself in situations in which plausible allegations of improper conduct could, and did, arise,” the filing said.

Paul Marciano, who has denied the allegations, will remain a board member and stay on as chief creative officer until his contract expires at the end of January. He had stepped aside from his day-to-day duties when the investigation began in February. He will forfeit his salary for the period he sat out, but will be paid from June until January. He also owns a 17 per cent stake in Guess Inc.

The allegations first became public when model Kate Upton said in a Time magazine interview that Paul Marciano grabbed her breasts during a Guess photo shoot nearly eight years ago. She also says that he harassed her by showing up at hotels where she was staying and texting her inappropriate comments.

Four brothers, including original designer George Marciano, in 1981 founded the brand whose denim became a phenomenon in the 1980s and 1990s.

Paul Marciano handled the company’s advertising, best known for its black-and-white photos of models including Anna Nicole Smith.