WWD.com/fashion-news/fashion-features/in-brief-gromek-s-green-pacsun-settles-financing-of-note-732838/
government-trade
government-trade

In Brief: Gromek’s Green … PacSun Settles … Financing of Note …

GROMEK’S GREEN: Joseph Gromek, appointed president and chief executive officer of Warnaco Group on April 15, will receive a $900,000 a year base salary during his first two years of employment and an opportunity to double that figure if...

GROMEK’S GREEN: Joseph Gromek, appointed president and chief executive officer of Warnaco Group on April 15, will receive a $900,000 a year base salary during his first two years of employment and an opportunity to double that figure if performance targets are met. According to the definitive proxy filed by the firm with the Securities and Exchange Commission Tuesday, Gromek is guaranteed a $450,000 bonus during the current year and can earn as much as $900,000 in bonus pay during both fiscal 2003 and 2004. Under terms of the two-year contract, which renews automatically for additional one-year terms unless notice of termination is given at least 180 days prior to its anniversary, Gromek was granted 150,000 shares of restricted stock and a 10-year option to purchase 600,000 shares of Warnaco stock. In Nasdaq trading Tuesday, Warnaco shares closed at $11.07, down 4 cents, or 0.4 percent.

PACSUN SETTLES: Pacific Sunwear of California Inc. on Tuesday said it had reached an agreement to settle two lawsuits regarding overtime pay for $4 million. The lawsuits, Auden v. Pacific Sunwear of California Inc. filed on Sept. 17, 2001, and Adams v. Pacific Sunwear Inc. of California filed May 3 of last year, claimed PacSun improperly classified certain California-based employees as “exempt” from overtime pay. While the Anaheim-based teen and young adult specialty retailer denied the allegations, PacSun said it agreed to the settlement “to avoid the cost, distraction and uncertainty associated with protracted litigation during the important summer and back-to-school selling seasons.” The company said the settlement, which is subject to court approval, will have no material impact on first-quarter results.

FINANCING OF NOTE: Guess Inc. Tuesday issued through a private placement $75 million in 6.75 percent notes due 2012, secured by assets including Guess’ intellectual property and licenses and royalty stream. Proceeds will be used to help repay the firm’s 9.5 percent senior subordinated notes due August 2003. Maurice Marciano, co-chairman and co-chief executive officer, said in a statement, “We are pleased with the completion of this financing transaction which improves our balance sheet by leveraging the strength of the Guess brand.”