In Business This Week: HEADLINER: JOHN POMERANTZ
HEMMED IN AT LESLIE FAY
Since January, 1993, Leslie Fay chief John Pomerantz, 61, has presided over an accounting scandal, a bankruptcy filing, an exodus of top executives (including his wife, Laura), and a 31%, two-year dive in revenues, to $535.3 million in 1994. Shares have fallen from nearly 13 to a recent 13/32.
But Pomerantz still has his job. To the surprise of the retailing industry, which had speculated that the company would soon liquidate, Leslie Fay announced on June 19 that it expects to emerge from bankruptcy later this year. Attempts were made to find a buyer for the maker of Leslie Fay dresses and Outlander sportswear, but the troubled company was unable to close a deal.
Rebuilding may be a stretch. Macy's, for instance, no longer carries its line of sportswear, and apparel sales have been sagging with the economy. Pomerantz will draw an $800,000 salary for trying, but has agreed to forgo a $1.5 million "success fee" he was originally to have collected under his employment contract. EDITED BY THANE PETERSON By Elizabeth Lesly