Tommy Hilfiger Corporation announced that Joel Horowitz has been named Chairman of the Company, replacing Tommy Hilfiger, who will resume his long-time role as Honorary Chairman and Principal Designer. The appointment is effective immediately. Mr. Horowitz will also continue in his role as Chief Executive Officer and President.
“Since becoming Chairman last October, Ive been working with the Board to analyze a variety of long-term strategic and management issues,” Tommy Hilfiger said. “As part of that process, we considered the most effective way to continue the successful long-term partnership between Joel Horowitz and myself. I came to realize the Company would be better served by each of us focusing on the work that best plays to our strengths and passions.
“For me, that means concentrating on the creative aspects of an apparel business — design and marketing. Similarly, I came to the conclusion that the right person to concentrate on governance and strategic planning issues was Joel — and if others agreed with me, we should have him assume the Chairman role as soon as possible and I would return to my previous positions. The Board agreed with my assessment, and that led to today’s announcement.”
Mr. Horowitz said, “I have always said I wanted to continue a strong involvement with this Company, and I am delighted to have the opportunity to do so as Chairman. At the same time, we are actively continuing our search for my successor as Chief Executive Officer. The apparel industry is facing many challenges but we have the building blocks to move ahead with a strong global brand, an excellent cash position, and numerous opportunities to extend our reach worldwide. I have three priorities going forward, all of which have to do with rebuilding long-term shareholder value. First, we will continue our intense focus on improving operations. Second, we will continue using our cash to pay down debt. And third, we will continue to seek opportunities to further diversify our revenue and earnings base. We will move thoughtfully, but with appropriate speed.”
The Company also stated that David Tang was appointed as an independent director of the Company at a meeting of its Board of Directors on February 3, 2003, replacing Simon Murray, who resigned to attend to other business interests and board positions. Mr. Tang, a seasoned retailing executive with broad international business interests, is the founder of numerous businesses, including Shanghai Tang stores. Mr. Tang will also serve as a member of the Board’s Audit and Compensation Committees. The Company affirmed its commitment to having a majority of independent directors in the near future.
