Marciano Steps Down as Chief of Yes Clothing, Unloads Stock

Former Guess Inc. Chairman Georges Marciano has relinquished the top job at Los Angeles-based Yes Clothing Co. and sold most of his stake in the garment firm, the company said Wednesday.

Marciano, who developed a reputation as a successful designer at Guess, is leaving Yes amid the company’s financial troubles, including recent quarterly losses.

The company has also operated under potentially costly legal clouds during his tenure because of claims of trademark infringement brought by Marciano’s brothers--Maurice, Paul and Armand--who currently control Guess.

Marciano sold 3.5 million Yes shares to company director Guy Anthome for $35,000. Yes said Anthome will succeed Marciano as chairman and chief executive.

Executives at Yes were not available for comment. In a statement, Marciano said he resigned from the company to “concentrate on other businesses.”

Marciano acquired a controlling stake in Yes stock in February 1995 and became chief executive four months later. Yes subsequently discontinued its production of private-label clothing for other companies and concentrated on its own brand of products, including denim clothing for women, under a design staff directed by Marciano.

However, the company continued to slide under Marciano’s leadership. The company had a loss of $4.5 million for the nine months ended Dec. 31, compared with a loss of about $2 million for the same period of 1994.

Some analysts said Marciano collaborated with his brothers when he headed Guess and may have underestimated the turnaround task facing a chief executive at Yes.

Marciano was chief executive at Guess until leaving in August 1993. The brothers did not discuss the reasons for the split. Marciano sold his 40% stake in the company to his brothers for about $220 million.

“Georges bit off more than he could chew,” said Alan Millstein, a New York-based apparel industry analyst. “He is a great jeans designer but has not proven he can be a star on his own.”

Marciano’s mission was further complicated by his brothers, who appealed a trademark infringement case in January by asking the U.S. Patent and Trademark Office to prohibit the use of the Baby Yes, Yes Jeans, Yes Men and Yes Kids trademarks on the basis that they are too similar to Guess trademarks.

Marciano, in published comments last month, said Yes Clothing might be forced to close if it lost the trademark dispute.

In his statement Wednesday, Marciano said the company will take “new merchandising direction” under its new chief executive.

He retains 2.7 million shares; 7.04 million shares are outstanding. Yes stock fell 50 cents to $1.625 on Nasdaq on volume of 28,000 shares. The stock has sold as low as 75 cents and as high as $5 in the last year.