Linda J. Wachner
Encyclopedia
Linda Joy Wachner is an American
businesswoman. She was President and CEO of Warnaco Group
Inc. from 1986 to 2001. She began her career as a buyer for department stores including Foley's
and Macy's
.
She led a $550m buyout of Warnaco Inc. in 1986 which saw her take control of the company. During this time Warnaco oversaw brands which included Speedo and Calvin Klein
.
In 1993, Fortune magazine
listed Wachner among the seven "roughest, toughest, most intimidating bosses". Also on the list were T. J. Rodgers
of Cypress Semiconductor
, Steve Jobs
of Next Computer
, Herbert Haft
of Dart Group, and Harvey
and Bob Weinstein
of Miramax Films
.
In 1996, Wachner was reported to be the highest-paid female corporate executive in the United States.
In 2000, Calvin Klein, Inc. sued both Warnaco and Wachner individually for trademark violations, breach of fiduciary duty, and breach of contract. The lawsuit stemmed from Warnaco's selling Calvin Klein branded jeans and underwear to warehouse club
s such as Costco
and BJ's Wholesale Club
, which Klein contended devalued his brand name. Warnaco responded by saying that Klein had known of the sales to warehouse clubs all along and that he had failed to participate in meetings about the design of Warnaco's Calvin Klein clothing. The lawsuit was settled in 2001. Although the terms of the settlement were not publicly revealed, The New York Times
reported that Warnaco would retain its license for Calvin Klein jeanswear but would to limit its sales of such jeans to warehouse clubs and mass merchandisers, while Klein or his design team would have the right to approve changes in cut and material but would have to respond quickly to Warnaco's questions and requests for changes.
Warnaco filed for bankruptcy protection on June 11, 2001. On November 16 of that year, Warnaco fired Wachner as chief executive, offering her no severance pay; due to the company's bankruptcy filing, Wachner's contract (which would otherwise have entitled her to a payment of $43.6 million on termination) had been voided.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businesswoman. She was President and CEO of Warnaco Group
Warnaco Group
The Warnaco Group, Inc. is an American textile/apparel corporation which designs, sources, markets, licenses, and distributes a wide range of intimate apparel, sportswear, and swimwear worldwide. Its products are sold under several brand names including Calvin Klein, Speedo, Chaps, Warner's, and...
Inc. from 1986 to 2001. She began her career as a buyer for department stores including Foley's
Foley's
Foley’s was a chain of department stores owned by May Department Stores and headquartered in Downtown Houston, Texas. As of August 30, 2005, the division was dissolved and operation of the stores was assumed by Federated's Macy's West and Macy's South divisions. Foley's operated stores in Texas,...
and Macy's
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...
.
She led a $550m buyout of Warnaco Inc. in 1986 which saw her take control of the company. During this time Warnaco oversaw brands which included Speedo and Calvin Klein
Calvin Klein
Calvin Richard Klein is an American fashion designer who launched the company that would later become Calvin Klein Inc. in 1968. In addition to clothing, Klein has also given his name to a range of perfumes, watches, and jewelry....
.
In 1993, Fortune magazine
Fortune (magazine)
Fortune is a global business magazine published by Time Inc. Founded by Henry Luce in 1930, the publishing business, consisting of Time, Life, Fortune, and Sports Illustrated, grew to become Time Warner. In turn, AOL grew as it acquired Time Warner in 2000 when Time Warner was the world's largest...
listed Wachner among the seven "roughest, toughest, most intimidating bosses". Also on the list were T. J. Rodgers
T. J. Rodgers
Thurman John Rodgers, better known as T.J. Rodgers, is the founder and chief executive officer of Cypress Semiconductor. He is known for his public relations acumen, brash personality, and strong advocacy of laissez-faire capitalism.-Early life:...
of Cypress Semiconductor
Cypress Semiconductor
Cypress Semiconductor Corporation is a Silicon Valley-based semiconductor design and manufacturing company founded by T. J. Rodgers and others from Advanced Micro Devices. It was formed in 1982 with backing by Sevin Rosen and went public in 1986. The company initially focused on the design and...
, Steve Jobs
Steve Jobs
Steven Paul Jobs was an American businessman and inventor widely recognized as a charismatic pioneer of the personal computer revolution. He was co-founder, chairman, and chief executive officer of Apple Inc...
of Next Computer
NeXT
Next, Inc. was an American computer company headquartered in Redwood City, California, that developed and manufactured a series of computer workstations intended for the higher education and business markets...
, Herbert Haft
Herbert Haft
Herbert H. Haft was a Washington, D.C. based businessman who was famous first for the development of discount stores in the drug store, bookstore, and auto part businesses, and later as a corporate raider...
of Dart Group, and Harvey
Harvey Weinstein
Harvey Weinstein, CBE is an American film producer and movie studio chairman. He is best known as co-founder of Miramax Films. He and his brother Bob have been co-chairmen of The Weinstein Company, their film production company, since 2005...
and Bob Weinstein
Bob Weinstein
Robert "Bob" Weinstein is an American film and theatre producer, the founder and head of Dimension Films, former co-chairman of Miramax Films, and current head, with his brother Harvey Weinstein, of The Weinstein Company.-Career:...
of Miramax Films
Miramax Films
Miramax Films is an American entertainment company known for distributing independent and foreign films. For its first 14 years the company was privately owned by its founders, Bob and Harvey Weinstein...
.
In 1996, Wachner was reported to be the highest-paid female corporate executive in the United States.
In 2000, Calvin Klein, Inc. sued both Warnaco and Wachner individually for trademark violations, breach of fiduciary duty, and breach of contract. The lawsuit stemmed from Warnaco's selling Calvin Klein branded jeans and underwear to warehouse club
Warehouse club
A warehouse club is a retail store, usually selling a wide variety of merchandise, in which customers are required to buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters and small business owners. The clubs are able to keep prices low...
s such as Costco
Costco
Costco Wholesale Corporation is the largest membership warehouse club chain in the United States. it is the third largest retailer in the United States, where it originated, and the ninth largest in the world...
and BJ's Wholesale Club
BJ's Wholesale Club
BJ's Wholesale Club, Inc. , commonly referred to simply as BJ's, is a membership-only warehouse club chain operating on the United States East Coast, as well as in the state of Ohio...
, which Klein contended devalued his brand name. Warnaco responded by saying that Klein had known of the sales to warehouse clubs all along and that he had failed to participate in meetings about the design of Warnaco's Calvin Klein clothing. The lawsuit was settled in 2001. Although the terms of the settlement were not publicly revealed, The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
reported that Warnaco would retain its license for Calvin Klein jeanswear but would to limit its sales of such jeans to warehouse clubs and mass merchandisers, while Klein or his design team would have the right to approve changes in cut and material but would have to respond quickly to Warnaco's questions and requests for changes.
Warnaco filed for bankruptcy protection on June 11, 2001. On November 16 of that year, Warnaco fired Wachner as chief executive, offering her no severance pay; due to the company's bankruptcy filing, Wachner's contract (which would otherwise have entitled her to a payment of $43.6 million on termination) had been voided.