Nautica Enterprises, Inc. said today it is pleased that Glass, Lewis & Co. LLC, which advises institutional investors in the financial markets, pointed out important information concerning the two nominees proposed by the Barington Group for the Nautica Board of Directors.
The Glass, Lewis report noted that Barington nominee William J. Fox was chief financial officer at Revlon from 1991 to 1997, a period during which Revlon ''significantly missed its financial performance targets.'' It pointed out, among other things, that ''Wall Street was taken by surprise, and Revlon's stock lost more than 45% of its market value in a single day, costing investors more than $1.5 billion.'' It said that ensuing litigation initiated by Revlon shareholders against the company and Mr. Fox personally ended only this year with defendants paying nearly $10 million.
The Glass, Lewis report also noted that Barington Capital has been censured and fined by the NASD, and that another member of the Barington Group, Ramius Securities LLC, was fined and suspended by the NASD in 2001 for market-making activities in the immediate aftermath of the initial public offerings.
These facts, added to the previous information provided by Nautica Enterprises about the Barington nominees' lack of experience in the apparel manufacturing industry or any related industry, the group's history of short-term strikes at unrelated microcap companies, and no discernable track record for building sustainable stockholder value, reinforce the Board's conclusion that electing the Barington nominees would not be in the best interests of all Nautica Enterprises shareholders.
The Nautica Enterprises Board pointed out that in contrast to Mr. Mitarotonda and Mr. Fox, Charles Scherer and John Varvatos bring invaluable experience and strong credentials to the Board. Mr. Scherer, who has been a director of Nautica Enterprises since 1994, previously served as general counsel and then chief financial officer for Collins & Aikman, one of the world's largest textile manufacturers, and Mr. Varvatos, an apparel designer and merchant with over 20 years of experience in the industry, is one of the most highly regarded men's wear designers in the field today.
Nautica Enterprises continues to urge all stockholders to reject Barington's proxy solicitation, the Barington nominees and the other Barington proposal, and by signing, dating, and returning the WHITE proxy card to elect the company's entire eight-member board.