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Wachner out at Warnaco
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November 16, 2001: 11:18 a.m. ET
CEO and chairman of apparel maker is replaced five months after bankruptcy.
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NEW YORK (CNN/Money) - Warnaco Group Inc. boss Linda Wachner, one of the few women to hold both the chairman and CEO jobs of a Fortune 500 company, lost both positions Friday, five months after the apparel maker filed for bankruptcy court protection.
Antonio Alvarez Jr., who joined the company as its chief restructuring officer in May, will succeed Wachner as CEO, while outside board member Stuart Buchalter is the new chairman.
The company said Wachner, who had been CEO since 1987 and chairman since 1991, is leaving the company to move toward new business ventures. It also said it was looking a full range of options for the future, including sale of the company.
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Antonio Alvarez
Restructuring officer named new CEO of Warnaco. | |
"We are looking at all strategic alternatives, ranging from a stand-alone restructuring of what we determine to be our 'core' businesses, to the sale of more assets or possibly even the entire company," said a statement from Alvarez.
Warnaco board members thanked Wachner for her efforts in their statement, but said it was time for a change.
"In addition to leading the restructuring effort thus far, Tony has demonstrated a real grasp of Warnaco's businesses and has earned the respect and support of our creditors, licensors and employees," said a statement from Buchalter.
Warnaco, a leading maker of underwear and bras as well as apparel under such well-recognized brand names as Calvin Klein, Ralph Lauren and Oscar de la Renta, filed for bankruptcy protection in June.
Wachner's tenure had become somewhat controversial. The company faced lawsuits charging management concealed financial problems from shareholders. It also settled a trademark lawsuit from Calvin Klein and has been sued by Fruit of the Loom Ltd.
Two years ago, Warnaco agreed to pay $418 million to buy back Authentic Fitness Corp., the maker of Speedo swimwear, which had been spun off to a management group led by Wachner for about a quarter of that price a decade earlier. Wachner had served as CEO of both companies during their separation.
At the company's shareholder meeting earlier this year, Wachner faced angry questions about company's debt burden, Wachner's compensation, and the stock's dismal performance. 
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