Marc Crossman has resigned as president and chief executive officer of embattled Joe’s Jeans Inc.
Samuel Joseph “Jay” Furrow Jr. has been appointed interim ceo. Crossman will transfer into a consulting position with the Los Angeles-based jeans firm, which also owns the Hudson Jeans brand.
Furrow previously served as ceo of Joe’s predecessor company, Innovo Group Inc., and earlier was its president and acting cfo. Samuel J. “Sam” Furrow, his father, is Joe’s chairman.
“We are thankful for Marc’s leadership and relationship with the company since 1999,” said Jay Furrow. “During Marc’s tenure, the company has undergone several transformations from a private label craft and accessory business to an internationally recognized premium denim company.”
Crossman’s resignation after a nine-year tenure as ceo comes as the company continues to seek waivers and adjustments on its term loan with Garrison Loan Agency. It said in November that, in the 12 months endedSept. 30, it had fallen out of compliance with the earnings provisions of the loan, automatically putting it in violation of its revolving credit and factoring facility with CIT Commercial Services. The default also triggered an increase in the interest rate on the Garrison loan to 14 percent from 12 percent.
Joe’s acquired Los Angeles area rival Hudson Jeans for about $97.6 million in October 2013, and a portion of the proceeds came from the Garrison loan.
Crossman, a former equity analyst, was appointed to Joe’s board in 1999 and joined the firm as chief financial officer in 2003. He became president the following year and ceo in 2006.