VALHALLA, N.Y.--(BUSINESS WIRE)--April 30, 2003--Candie's, Inc.
(NASDAQ: CAND) ("Candie's" or the "Company") today announced that it
has reached an agreement with the United States Securities and
Exchange Commission (the "Commission") to settle the Commission's
previously disclosed investigation of the Company.
The agreement settles allegations regarding matters that have been
under investigation by the Commission since July 1999. These matters
were also the subject of a previously disclosed internal investigation
completed by a Special Committee of the Board of Directors of the
Company in August 1999, which culminated in the Company's September
1999 restatement of the financial statements in its Form 10-K for the
fiscal year ended January 31, 1998 and its Forms 10-Q for the first
three quarters of the fiscal year ended January 31, 1999. Candie's
Chief Executive Officer, Neil Cole, has also reached a settlement with
The respective administrative cease and desist orders that will be
entered in accordance with the settlements allege the use of
fraudulent accounting practices by certain former members of Candie's
senior management from August 1997 until the Spring of 1999. Pursuant
to its settlement, the Company, without admitting or denying any of
the Commission's allegations, has consented to the entry of an
administrative order to cease and desist from violations of the books
and records, internal controls, periodic reporting and anti-fraud
provisions of the Securities Exchange Act of 1934 (the "34 Act") and
the anti-fraud provisions of the Securities Act of 1933. The order
recognizes the Company's cooperation with the Commission's Staff and
its prompt implementation of remedial measures. No civil monetary
penalty will be imposed against the Company.
Pursuant to the terms of his settlement, Mr. Cole, without
admitting or denying the Commission's allegations, has consented to an
administrative order to cease and desist from violating or causing the
violation of certain books and records, internal controls and periodic
reporting provisions and the anti-fraud provisions of the '34 Act. Mr.
Cole will also pay a $75,000 fine.
Deborah Sorell Stehr, the Company's Senior Vice President,
Secretary and General Counsel commented: "The Company's settlement
recognizes both our prompt remediation and full cooperation with the
Commission's Staff and will enable Candie's to put this investigation
behind it and to continue to move forward in a positive direction."
About Candie's Inc.
Candie's, Inc. is a leading designer and marketer of young women's
footwear under the Candie's and Bongo brands and jeans wear under the
Bongo brand through its wholly owned subsidiary, Unzipped Apparel,
LLC. The Company distributes its products under the Candie's and Bongo
brand names through department and specialty stores nationwide, as
well as through company-owned stores and specialty stores
internationally. Additionally, the Candie's brand is licensed for the
manufacture and sale of apparel, swimwear, fragrances, eyewear and
watches, and the Bongo brand is licensed for womens' and kids'
apparel, sportswear, cold weather accessories, swimwear, belts,
eyewear, jewelry and watches. Candie's, Inc. operates its website at
http://www.candies.com. For investor information please visit the
corporate web site at http://www.candiesinc.com.
Richard Danderline, 914/749-2912
SOURCE: Candie's, Inc.