BRIEFLY / RETAILING : North Face CEO Quits After Sale Plan Fails

North Face Inc., a maker and retailer of sports equipment and apparel, said that a planned sale of the company to its chief executive and buyout firm Leonard Green & Partners was called off. Chief Executive Jim Fifield announced his resignation. A company spokeswoman declined to say why the deal fell through, and a partner familiar with the deal at Los Angeles-based Leonard Green was not available to comment. Leonard Green had said it was reconsidering the original deal, valued at $216 million, or $17 a share, after North Face restated financial results downward for 1998 and 1997 in light of questions raised by its outside auditors about certain transactions. In the restatement, North Face cut 1998 net income 62% to $3.6 million. Fifield, who was part of the original deal, said he would remain on the board after resigning as CEO and president of North Face. “I was actively involved with the proposed Leonard Green transaction and I am disappointed with the termination of the agreement,” he said in a statement. North Face said Vice Chairman William Simon will serve as interim CEO while it conducts a search for a new chief. Investment bank Deutsche Bank Alex. Brown will continue to advise the company on a possible sale, North Face said. Shares of Carbondale, Colo.-based North Face fell 88 cents, or 10%, to close at $7.88 on Nasdaq. The shares hit a 52-week high of $16.69 in March after news of the original buyout deal.