Tommy Under Investigation

Tommy Hilfiger U.S.A. Inc. (New York) announced that it has received a grand jury subpoena issued by the U.S. Attorney’s Office for the Southern District of New York seeking documents generally relating to its domestic and/or international buying office commissions since 1990. Certain of Tommy’s current and former employees have also received subpoenas.

Tommy pays buying office commissions to a non-U.S. subsidiary of Tommy Hilfiger Corp. (Kowloon, Hong Kong) to provide or otherwise secure certain services, including product development, sourcing, production scheduling and quality control functions. It appears that the investigation is focused on whether the commission rate is appropriate.

Tommy Hilfiger U.S. is a wholly owned subsidiary of Tommy Hilfiger Corp. The company said it is responding to the investigation, including providing documents requested by the subpoena. It said it is unable to predict the timing or outcome of the investigation.