Off Staff?

Marty Staff, president and ceo of Hugo Boss USA, is reportedly “on paid administrative leave” while parent company Hugo Boss AG (Metzingen, Germany) conducts an internal audit of its U.S. division.

According to a report in DNR, there is the feeling that the German fashion apparel company might be preparing to restructure the U.S. division, which reported a 19 percent sales drop in the first quarter.

A Hugo Boss spokesperson told DNR that Staff and cfo Vincent Ottomanelli were on vacation, not administrative leave, and declined to comment about any audit of the U.S. operation.

DNR quoted a former Hugo Boss executive of both the European and U.S. offices as saying that Staff's flamboyant personality has been at odds with the staid German parent group. Nonetheless, the Germans are also appreciative of the way Staff had built the U.S. business. DNR notes that since Staff joined the company in June 1998, its core volume has jumped nearly 50 percent and profits have soared 600 percent. Staff had previously been president and coo of Calvin Klein's men's collection, and before that had headed the retail division at Polo.

A few weeks ago, Dr. Bruno Salzer, who will become chairman and ceo of Hugo Boss AG later this month, visited the U.S. offices and hosted a party in the company's New York flagship store.