Turnaround Expert Is Named Mossimo CEO

Fashion designer Mossimo Inc. said Thursday that founder Mossimo Giannulli is giving up his chief executive and president jobs, handing them to turnaround specialist John Brincko in a move to stabilize the management of the deeply troubled company.

Brincko joined Mossimo as a consultant in January and has worked to curb losses by slashing jobs and salaries, restructuring management and putting the company’s Irvine Spectrum headquarters up for lease.

Giannulli said the latest change will allow him to focus on the design, image and marketing of the company. He did not return phone calls seeking additional comment.

In making Brincko an officer of the company, Giannulli remains chairman and is taking on a new job: “Visionary.” He is not, however, giving up control. Giannulli owns 70% of Mossimo’s shares.

“The new title says it all,” Brincko said. “He’s an exceptionally creative individual who is going to be deeply involved in the vision of this company for the future.”

But in the near term, it is past mistakes that Brincko is charged with fixing. The company also reported Thursday that it lost $13.5 million, or 90 cents a share, in the fourth quarter, in line with a forecast last month. Sales in the period ended Dec. 31 plunged 52%, to $12.8 million.

For the year, Mossimo lost $18.7 million, or $1.25 a share, compared with a $10.7-million profit, or 72 cents a share, in 1996. Annual sales slumped 35%, to $70.9 million.

The company is trying to recover from a poorly executed attempt to make the transition from a designer of beach and casual apparel to one of upscale clothing.

Brincko, 55, has 20 years of experience dealing with troubled companies. He helped restructure and sell Knudsen Foods and Sunworld International.

Mossimo shares were unchanged at $4.50 Thursday on the New York Stock Exchange.