Guess is in the sights of activist investors asking for the removal of the fashion retailer's co-founders from the company's board, saying sexual-misconduct allegations against one of the men are a distraction for the business.

Legion Partners Asset Management, with a 15% stake in Guess, is pushing to oust Paul Marciano from his role as chief creative officer, and from the board, and for his brother, Maurice Marciano, to leave the board, according to a letter released by the investors on 8 February. The investors argue that allegations against Paul Marciano will complicate the retailer's turnaround efforts.