NEW YORK — Tarrant Apparel Group founder Gerard Guez has, once again, ceded his position as chief executive officer of the company.
According to a statement, current president Barry Aved, 61, will take over day-to-day operations from Guez immediately. Guez will continue in his role as chairman, a position he has held since founding the company in 1988.
The announcement marks the end of Guez’s second stint as ceo. He first held the position from 1988 to 2001 and was again appointed in March 2003.
Aved has served as a director with the company since 1996, having held the title of president from September 1999 to March 2000. He was appointed president for the second time in September 2003 and will retain his title with the promotion.
“Barry has been integral to the management and operation of our company,” said Guez in a statement. “In recognition of his contributions, we are pleased to promote him to the role of chief executive.”
The company also announced that Patrick Chow, chief financial officer since January 2002, will be stepping down for “personal reasons.” Corazon Reyes, a 16-year company veteran, has been appointed Chow’s successor and will assume cfo responsibilities Aug. 16.
Referring to Aved and Reyes, Guez said in a statement, “I’ve worked closely with both of them so I’m extremely confident in their respective management capabilities.”
Shortly following the announcement of the shakeup in management, the company announced it had obtained a new $45 million factoring facility from GMAC Commercial Finance. The three-year facility replaces the company’s existing $90 million revolving credit facility.
“The new facility will be one by-product of management’s reduction of the huge working capital requirements for Mexico, and fits the needs of the trading model to which we are returning,” said Guez in a statement. Tarrant recently ceased producing goods in Mexico, a move which helped reduce the company’s losses in the quarter ended March 31.
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