Fashion News Alert: Ralph Lauren Settles, Janice’s Bankruptcy and Coach Designer Moves On

Federal authorities reported on Monday that the Ralph Lauren Corp. has agreed to settle for  1.6 million dollars in bribery  case. The U.S. Justice Department and Securities Exchange Commission allege that the Ralph Lauren Corporation (RLC) between 2005 and 2010 paid $700,000 in illicit profit to Argentine import officials.

Though the company promptly reported the violations, fired employees and a third-party agent involved in the scandal, as well as shut down its Argentine stores, the case still had to be presented before federal authorities. “Of course the company did do all the right things when it surfaced to make sure it will not happen anywhere else, ” Thomas Hanusik, attorney for RLC said. “We’ve ceased operations in Argentina.” “The NPA in this matter makes clear that we will confer substantial and tangible benefits on companies that respond appropriately to violations and cooperate fully with the SEC,” said George Canellos, acting director of its enforcement division.

The SEC confirmed that bribes of $593,000 were paid over four years through its customs broker to get RLC good into Argentina avoiding necessary paperwork and without inspection of prohibited goods. An Argentine subsidiary of RLC disguised its illegal operations by funneling money through a customs clearing agency.

Janice Dickinson’s Financial Woes

The world’s first supermodel Janice Dickinson has declared bankruptcy, with over $1 million in debt. And a small portion that debt is owed to a dermatologist who has performed some of the many cosmetic procedures she has received over the years.

“I am upset and taking every step to pay everyone back and I feel terrible about it,” says 58-year old Dickinson according to Radar Online. Dickinson’s taxes date back 10 years or more and it is reported that she owes over $500,000 in back taxes in New York State, California and the IRS.

Reed Krakoff says Sayonara

After 16 years, Reed Krakoff, president and executive creative of Coach has decided to call it quits. Quits with Coach, that is. With the departure, Krakoff can now concentrate on his own namesake line.

“His contribution in evolving Coach from a house of American leather goods to a leading international accessories brand is immeasurable,” Coach chairman and chief executive officer Lew Frankfort told WWD. “We have great admiration and respect for Reed’s significant accomplishments.”

Like all things in life, change is inevitable. Look forward to Coach’s new woman’s line that will launch soon and Coach’s new replacement of Krakoff.

—Staff