Leslie Fay's Ceo Will Stay On

John Pomerantz, CEO of apparel maker Leslie Fay, will keep his job. This even after an audit committee announced on Sept. 29 that because of "accounting irregularities," the company will restate three years of profits as an $81 million pretax loss. Leslie Fay's CFO left in March, and President Michael Babcock will take over most of Pomerantz' operating duties. Still, some on Seventh Avenue think that Pomerantz, whose father founded Leslie Fay, should find a graceful way to step aside. Says New York retail consultant Alan Millstein: "For the board to maintain Pomerantz' presence is an embarrassment."