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                                                                 Exhibit 10.91

                               BERNARD CHAUS, INC.
                               530 Seventh Avenue
                            New York, New York 10018



                                                                June 1, 2001


Mr. Gregory Mongno
c/o Bernard Chaus, Inc.
530 Seventh Avenue
New York, NY 10018

Dear Mr. Mongno:

                  We are pleased to offer you continued employment with Bernard
Chaus, Inc. (the "Company") effective June 1, 2001 (the "Effective Date"), on
the terms set forth below. This letter agreement supersedes the letter
agreement, dated January 7, 2000, between you and the Company.

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<S>                        <C>                                                          <C>
POSITION:                  President (reporting to the Chief Executive Officer
                           and Chief Operating Officer). You shall devote all of
                           your business time and attention to the business and
                           affairs of the Company consistent with your position
                           with the Company.

SALARY:                    Your base salary shall be as follows:

                           (i) from the Effective Date through May 31, 2002:            $500,000 per year;
                           (ii) from June 1, 2002 through May 31, 2003:                 $550,000 per year;
                           (iii) from June 1, 2003 through May 31, 2004:                $600,000 per year.

TERM:                      Effective Date through May 31, 2004.

                           Bonus: You shall be eligible to participate in the
                           Company's incentive compensation plan. We anticipate
                           that targets for each fiscal year during the term
                           will be set on or prior to July 1 of each fiscal
                           year. Your bonus will be based upon targets set by
                           the Compensation Committee in its sole discretion.
                           Your minimum bonus for the fiscal year ending June
                           30, 2002 will be $150,000 and you will be paid that
                           minimum amount on September 1, 2001, unless you leave
                           the Company voluntarily or are terminated for cause
                           (as defined herein) prior to such date. The targets
                           will be based upon "Annual Net Profits" which shall
                           mean the net income of the Company for any fiscal
                           year as reflected on the audited financial statements
                           of the Company for such fiscal year prepared in
                           accordance with generally accepted accounting
                           principles. The bonus for a particular


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Mr. Gregory Mongo
June 1, 2001
Page 2


                           fiscal year shall be payable to you on September 1
                           following such fiscal year ended June 30, but only if
                           you are employed by the Company on June 30 of such
                           fiscal year; provided, however, that if your
                           employment shall be terminated by the Company without
                           Cause (as defined below) other than as a result of
                           your death or disability, prior to the end of a
                           fiscal year, the pro rated portion of the bonus for
                           such year (based upon the number of months of the
                           fiscal year which elapsed before the termination
                           date) shall be paid to you on September 1 following
                           such fiscal year.
AUTOMOBILE
  ALLOWANCE:               $700 per month.

COMPANY
  EXPENSE:                 You will be provided with a computer laptop and a
                           cellular telephone at the Company's expense, so long
                           as you are employed with the Company, in order for
                           you to perform the services hereunder.

BENEFITS:                  Participant in the Company's 401(k) plan.
                           Health insurance, including family coverage (with a
                           deductible not to exceed $1,000 per plan year). Term
                           life insurance equal to two (2) times base salary,
                           subject to your being in good health and not rated an
                           insurance risk based upon any past medical history at
                           the time the insurance is obtained.
                           Long-term disability coverage equal to 60% of salary,
                           up to a maximum of $15,000 a month. Coverage under
                           other policies available to officers of the Company
                           generally.

VACATION:                  Four weeks paid vacation, not to be taken more than
                           two weeks at a time and not to be carried over from
                           year to year.

OPTIONS:                   On August 4, 2001 (the "Option Date"), the Company
                           shall grant to you options to purchase 500,000 shares
                           of the Company's Common Stock (the "2001 Options"),
                           pursuant to the terms hereof, provided, that you are
                           employed with the Company on the Option Date. The
                           exercise price of the 2001 Options shall be the last
                           sale price of the Company's Common Stock as of
                           closing on the Option Date (Previous Close), as
                           quoted on the Over the Counter Bulletin Board. The
                           2001 Options shall vest in three equal annual
                           installments (rounded up to the nearest whole share)
                           on the anniversary dates of the Option Date and shall
                           otherwise be subject to the terms of the Company's
                           1998 Stock Option Plan (the "Plan"). The 2001 Options
                           and any other options granted to you under the Plan
                           are


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Mr. Gregory Mongo
June 1, 2001
Page 3


                           collectively referred to herein as the Options. In
                           the event your employment is terminated by the
                           Company without Cause (as defined below ) following a
                           Change of Control (as defined below), other than due
                           to your death or disability, any Options, which would
                           have vested at the anniversary of the grant date of
                           the applicable Option next following the date of
                           termination, shall vest immediately, any other
                           unvested Options shall be forfeited and you shall
                           have thirty (30) days from the termination date to
                           exercise vested Options. In the event of termination
                           for any other reason, all unvested Options shall be
                           forfeited and you shall have thirty (30) days from
                           the termination date to exercise vested Options. The
                           2001 Options shall be granted to you in addition to
                           any Options which you may become entitled to receive
                           on August 4, 2001 in exchange for options surrendered
                           by you in February 2001.

TERMINATION
    BENEFITS:              In the event your employment is terminated by the
                           Company without Cause, other than due to your death
                           or disability and other than following a Change of
                           Control, you shall be paid, in full satisfaction of
                           your rights against the Company for termination of
                           your employment, non-competition payments equal to
                           twelve (12) months' base salary, payable in twelve
                           (12) monthly installments. The foregoing payments
                           shall terminate immediately upon your acceptance of a
                           position as employee (including self- employment) or
                           consultant with another entity, and you agree to
                           provide immediate notice to the Company of your
                           acceptance of any such position. In the event your
                           employment is terminated by the Company without
                           Cause, other than due to your death or disability and
                           other than following a Change of Control, you hereby
                           agree to use commercially reasonable efforts to
                           obtain another position as employee or consultant. In
                           the event your employment is terminated by the
                           Company without cause, other than due to your death
                           or disability and other than following a Change of
                           Control, you shall also be paid a bonus payment which
                           shall be equal to the pro rated portion of the bonus
                           for the year of termination as calculated in
                           accordance with, and on the time frame provided
                           under, the "bonus" section above. In the event your
                           employment is terminated due to cause, your death or
                           a disability which prevents you from performing your
                           duties for three consecutive months or one hundred
                           eighty (180) days within any two year period, you
                           shall be paid only through the date of termination.

                           In the event your employment is terminated by the
                           Company without Cause (other than due to your death
                           or disability) following a Change of





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Mr. Gregory Mongo
June 1, 2001
Page 4

                           Control, you shall be paid, in full satisfaction of
                           your rights against the Company for termination of
                           your employment, within ten (10) days following your
                           termination date, (a) a lump sum payment, less
                           applicable withholdings and deductions, in an amount
                           equal to your salary for the remaining term of this
                           letter agreement calculated in accordance with the
                           terms of the "Salary" section above; and (b) a bonus
                           payment which shall be equal to the pro rated portion
                           of the bonus for the year of termination as
                           calculated in accordance with, and on the time frame
                           provided under, the "Bonus" section above; and (c)
                           your Options which have not yet vested, shall be
                           vested immediately and you shall have ninety (90)
                           days from the termination date to exercise all of
                           your Options.

                           In the event your employment is terminated by the
                           Company without Cause following a Change of Control
                           (other than due to your death or disability) and you
                           elect to continue your medical insurance coverage
                           under COBRA, the Company shall make COBRA premium
                           payments on your behalf for a period equal to the
                           lesser of (x) the remaining term of this letter
                           agreement and (y) twelve (12) months following such
                           termination.

CAUSE:                     Conviction of or plea of guilty or nolo contendere to
                           a felony; gross negligence or willful misconduct in
                           performing your duties resulting in material harm to
                           the Company or material diminution in the value of
                           the Common Stock; failure to comply with this letter
                           agreement in any material respect or failure to carry
                           out appropriate responsibilities assigned by the
                           Company's Chief Executive Officer, Chief Operating
                           Officer or the Board of Directors after, in either
                           case, notice of such failure and a thirty (30) day
                           cure period; commission of fraud, theft against or
                           embezzlement from the Company.

CHANGE OF CONTROL:         The Company shall be merged or consolidated with an
                           unaffiliated entity resulting in a change in a
                           majority of the Board of Directors or the Company
                           shall have sold substantially all of its assets to an
                           unaffiliated entity; the acquisition by any person or
                           group of beneficial ownership (as such terms are
                           defined under Regulation 13D of the rules and
                           regulations adopted under the Securities Exchange Act
                           of 1934, as amended) of more than 50% of the
                           Company's then outstanding common stock resulting in
                           a change in a majority of the Board of Directors.

NON-COMPETITION:           You agree not to compete with the business of the
                           Company (i.e., women's apparel) directly or
                           indirectly, whether as principal, manager, agent,
                           employee, consultant, investor, advisor or
                           representative, during the term

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Mr. Gregory Mongo
June 1, 2001
Page 5

                           of your employment with the Company and for a period
                           of twelve months thereafter. The foregoing will not
                           prohibit (i) your employment with a men's apparel
                           division of a company that is also engaged in the
                           business of women's apparel so long as you do not
                           provide any advice to, or perform any duties for, the
                           women's apparel division of such company or (ii) a
                           passive investment by you in a public company not
                           exceeding 2% of any class of equity securities of
                           such company. In the event that your employment
                           hereunder is terminated without Cause following a
                           Change of Control, your obligations under this
                           Non-Competition paragraph shall automatically
                           terminate.

NON-SOLICITATION
PERIOD:                    You agree that, during the term of your employment
                           with the Company and for a period of twelve months
                           thereafter, you will not solicit or hire any persons
                           who were employed or acting as a consultant to the
                           Company during the twelve-month period prior to the
                           termination of your employment with the Company.

CONFIDENTIALITY:           You agree that you will, during and after the end of
                           the term of your employment with the Company, keep
                           confidential all non-public information concerning
                           the Company or its business, except in the business
                           of and for the benefit of the Company, and you will
                           not, directly or indirectly, use for your own account
                           any of such information.

REMEDIES:                  As you can understand, since we have to be protected,
                           the Company will be entitled, in addition to other
                           remedies, to obtain an injunction against any
                           potential or actual violations of your
                           non-competition, non-solicitation or confidentiality
                           agreements.

WITHHOLDING TAXES:         All compensation hereunder shall be subject to
                           applicable withholding taxes.

GOVERNING LAW:             New York

REPRESENTATION:            You represent that your execution of this letter and
                           your performance of your obligations hereunder will
                           not violate the terms of any agreement, arrangement,
                           or understanding, order or decree to which you are a
                           party or by which you are bound.
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Mr. Gregory Mongo
June 1, 2001
Page 6

                  Please indicate your acceptance of the terms of this letter
agreement by your signature below. Once signed by both parties, this letter
agreement shall be binding on both parties. We look forward to your continued
employment with the Company.

                                       Sincerely,


                                       Bernard Chaus, Inc.


                                       By: /s/ Nicholas DiPaolo
                                           ---------------------------
                                               Nicholas DiPaolo
                                               Chief Operating Officer

Accepted and Agreed to as of the date set forth above:


/s/ Gregory Mongno
------------------
Gregory Mongno