Founder Sues in Effort to Dissolve Giorgio
LOS ANGELES (AP) _ A co-founder of the Beverly Hills fashion company Giorgio Inc. has filed suit seeking to dissolve the business.
The suit filed in Superior Court last week by Gayle Hayman contends her ex- husband has excluded her from income and a hand in running the company. Mrs. Hayman, who owns at least a 49 percent stake in Giorgio, asked the appointment of a receiver to manage the $100-million-a-year company.
Because her ex-husband-partner has a 51 percent stake, she said, Fred Hayman has been allowed to virtually exclude her from management and deprive her of income from the more than $90 million in assets she has in the firm.
The suit says the company has seen a 10 percent increase in its gross profits over the past year, but that under Fred Hayman’s management, has sustained a 46 percent drop in net profits.
Many of the same allegations were made in another lawsuit filed last month by Mrs. Hayman, who unsuccessfully sought a preliminary injunction to allow her to participate in management.
The new lawsuit seeks a court order forcing the sale of the company, known for its Rodeo Drive boutique and top-selling perfume, to a third party.
″Gayle Hayman has not been a part of Giorgio’s management for better than a year now, and this lawsuit is significant because it’s an admission on her part of the reality that she will not rejoin the management of Giorgio,″ said Fred Hayman’s attorney, Marshall Grossman. The lawyer also called her figures inaccurate.