Guez Liberates Himself From People's Liberation
Danny Guez, founder of Los Angeles denim maker People’s Liberation Inc., left the company in early October, giving up his position as creative director.
Until last summer, he was chairman and chief executive of the 3-year-old company, which makes apparel under the William Rast and People’s Liberation label. In May, Colin Dyne, formerly chief executive of Los Angeles zipper company Tag-It Pacific Inc., was named chief executive and co-chairman of the blue-jeans company.
“I have left People’s Liberation,” Guez confirmed on Oct. 11. “It was 100 percent my decision.”
Dyne was not available for comment.
Guez said he felt it was best to leave the company in the hands of the new management team brought in by Dyne. “I started the two brands. They are still my babies,” he said.
Guez owns 32 percent of the company’s stock but is barred from selling any shares until Nov. 30. People’s Liberation has the right of first refusal to purchase his stock, which recently were trading at 48 cents a share.
Guez, whose father is blue-jeans mogul Paul Guez of Blue Holdings Inc. and founder of the Sasson jeans line, will be paid three months’ salary, or $50,000, as part of his separation agreement, according to documents filed with the Securities and Exchange Commission. His annual base salary was $200,000.
Guez founded People’s Liberation in July 2004 and then acquired the license for the William Rast label, created by singer Justin Timberlake and his childhood friend Trace Ayala.
The company’s annual revenues have grown quickly, from $5 million in 2005 to nearly $16 million in 2006. However, the company has yet to turn a profit, with net losses totaling $570,000 in 2005 and $865,000 in 2006.
—Deborah Belgum
