Risk & Compliance

Apparel Company Puts Execs on Leave

Misuse and misappropriation of assets for personal benefit are among the issues being investigated.
Stephen TaubJune 22, 2006

Apparel manufacturer Hampshire Group has place three top executives on administrative leave as the company’s audit committee investigates of a host of issues.

The three individuals are chief executive officer Ludwig Kuttner; executive vice president and treasurer Charles Clayton, also the former chief financial officer; and vice president of finance and principal accounting officer Roger Clark. Two personal assistants were also placed on administrative leave.

Jonathan Norwood, Hampshire’s CFO, took the top finance job in April, reported Reuters.

According to a press release, the audit committee has hired an independent counsel to investigate a number of issues involving Hampshire’s senior management, including the misuse and misappropriation of assets for personal benefit; certain related-party transactions; tax reporting; internal-control deficiencies; and financial reporting and accounting for expense reimbursements.

“The board of directors and other members of senior management of Hampshire are committed to the highest level of accounting and financial reporting standards,” said president Michael Culang. “Our business units remain focused on providing our customers with quality products and the highest level of customer service.”

Culang will serve as interim CEO, effective immediately. In addition, former senior executive vice president and chief marketing officer Eugene Warsaw is assisting the board.