jasmine sola

New York & Co. is shutting its chain of 23 Jasmine Sola upscale women's clothing stores that got its start in Harvard Square in 1970.

The decision comes a little more than two years after the New York retailer purchased Boston-based Jasmine Co. Inc. from founder Luciano Manganella for $30 million - an acquisition that wound up mired in controversy amid charges of sexual misconduct.

New York & Co. said the closures would allow it to "focus future investments on higher return opportunities within its New York & Co. brand."

The company last year fired Manganella, who had been retained as president, alleging he breached its business conduct code by making "unwelcome sexual advances and suggestive, lewd or derogatory remarks" to Jasmine employees, according to a lawsuit that it filed against him in federal district court. The lawsuit also claimed he downloaded sexually-graphic images onto Jasmine computers.

". . . At least four associates of Jasmine volunteered detailed accounts of Manganella propositioning each of them to engage in sexual activity with him and (said that he) made lewd and demeaning comments about their bodies," the court documents state.

Manganella denied the allegations, which included claims that he asked an employee if she'd "ever been with an Italian man" and that he removed his wedding ring and suggested an employee pose as his niece and call him "Uncle Luciano."

The district court case, filed while the company and Manganella were involved in arbitration over $7 million of the Jasmine Co. purchase price held in escrow, was voluntarily dismissed in May to allow the arbitration to continue.

In June, the arbitrators ruled that Manganella did not commit a major employment breach and awarded him $2.3 million in attorneys' fees and costs.

New York & Co. will close the JasmineSola stores by the end of the fourth quarter and may convert them to its New York & Co. brand.

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