Tommy Hilfiger Commission Investigation

Tommy Hilfiger Inc., said on Friday that it received a federal grand jury subpoena seeking documents relating to commissions that were paid to a non-U.S. subsidiary since 1990. The investigation focuses on the question of whether the commission rate is appropriate, the clothing company said in a news release.

Other subpoenas, also issued by the U.S. Attorney's Office for the Southern District of New York, were sent to current and former employees, the company said. Tommy Hilfiger U.S.A., a wholly owned subsidiary of Hong-Kong based retailer and wholesaler Tommy Hilfiger Corp, said it pays commissions to a non-U.S. unit of its parent company to provide or secure services like product development, sourcing, production scheduling and quality control functions.

The company said it cannot predict the outcome or timing of the inquiry, but is responding to it by providing the documents requested in the subpoena.