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                                                                  EXHIBIT 10.90

                       THIRD LEASE MODIFICATION AGREEMENT

     THIS THIRD LEASE MODIFICATION AGREEMENT, made this 30th day of August,
1999, between HARTZ MOUNTAIN INDUSTRIES, INC., a New York corporation, having an
office at 400 Plaza Drive, P.O. Box 1411, Secaucus, New Jersey 07094
(hereinafter referred to as "Landlord") and BERNARD CHAUS, INC., a New York
corporation having an office at 800 Secaucus Road, Secaucus, New Jersey 07094
(hereinafter referred to as "Tenant").

                                  WITNESSETH:

     WHEREAS, by Agreement of Lease dated March 26, 1984, as amended by Lease
Modification Agreement dated March 15, 1994 and Second Lease Modification
Agreement dated September 29, 1995 (collectively, the "Lease"), Landlord leased
to Tenant and Tenant hired from Landlord approximately 206,000 square feet of
ground floor space and approximately 70,000 square feet of mezzanine space
located at 800 Secaucus Road in Secaucus, New Jersey;

     WHEREAS, the Expiration Date of the Lease is currently scheduled to occur
on June 30, 2000; and

     WHEREAS, Tenant failed to exercise its option to extend the Term of the
Lease; and

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                                                                  EXHIBIT 10.90

     WHEREAS, Landlord and Tenant have agreed to permit Tenant's continued lease
and occupancy of the Premises beyond the current Expiration Date of the Lease on
terms and conditions as are more fully set forth below.

     NOW, THEREFORE, for and in consideration of the Lease, the mutual covenants
herein contained and the considerations set forth herein, the parties agree as
follows:

     1.   The parties agree that the Term of the Lease and Tenant's lease of the
          subject Premises shall continue beyond the current Expiration Date for
          a period of four (4) years commencing July 1, 2000 and continuing
          through June 30, 2004. Tenant acknowledges that its continued lease
          and occupancy of the Premises pursuant to the terms and conditions set
          forth herein does not constitute the exercise of any option to extend
          the Term provided for in the Lease.

     2.   Commencing as of July 1, 2000 and continuing until June 30, 2004, the
          Fixed Rent shall be at an annual rate of Five and 90/100 Dollars
          ($5.90) per square foot multiplied by 206,000 square feet payable in
          monthly installments of $101,283.33.

     3.   (A) Landlord agrees that if, at any time during the Term, the Building
          located at 105 Enterprise Avenue (the "105 Building") becomes
          available for lease (other than new leases negotiated with the
          existing tenant or extensions or renewals of leases with the existing
          Tenant), Landlord shall, provided Tenant is not in default of this
          Lease beyond any applicable grace or cure periods, first notify
          Tenant, in writing, of such availability, which notice shall set
          forth the rent, terms and other conditions upon which Landlord would
          be willing to lease the 105 Building to Tenant ("Landlord's Notice").
          Tenant shall have a period of fifteen (15) business days following the
          giving of Landlord's Notice to notify Landlord, in writing, of its
          election to enter into a lease for the 105 Building upon the rent,
          terms and conditions set forth in Landlord's Notice. If Tenant shall
          notify Landlord in writing of its election to enter into such lease as
          tenant for the 105 Building within the said fifteen (15) business day
          period, Landlord shall deliver and Tenant shall execute a lease
          incorporating the rent, terms and conditions set forth in Landlord's
          Notice to Tenant with respect to the 105 Building. Time is of the
          essence with respect to Tenant's exercise of its rights hereunder.

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                                                                  EXHIBIT 10.90

          (B) If Tenant shall fail to notify Landlord in writing of its election
          to enter into such lease for the 105 Building within the fifteen (15)
          business day period referred to in subsection (A) hereof, then,
          subject to subparagraph (F) hereinbelow, the right granted to Tenant
          as set forth in subsection (A) of this section with respect to the 105
          Building shall automatically terminate and come to and end.

          (C) If Tenant shall not elect to lease the 105 Building under the
          terms and conditions set forth in Landlord's Notice within the fifteen
          (15) business day period following Landlord's Notice then, subject to
          subparagraph (F) hereinbelow, Landlord may thereafter lease the 105
          Building free of the restrictions herein stated;

          (D) The right granted Tenant under this Paragraph 3 shall terminate
          and become null and void upon the expiration or sooner termination of
          this Lease.

          (E) Reference is made to subparagraph 3(A) hereinabove. Landlord
          hereby agrees that the "terms and conditions upon which Landlord will
          be willing to lease the 105 Building to Tenant" shall be substantially
          similar (with the exception of the Rent) to the terms and conditions
          of the existing Lease.

          (F) Landlord hereby agrees that notwithstanding the fact that (i)
          Tenant elects not to lease the 105 Building as described in
          subparagraph 3(C) hereinabove, or (ii) Tenant fails to respond to
          Landlord's Notice within the fifteen (15) business day period as
          described in subparagraph 3(B) above, if, and only in the event
          Landlord determines that it shall lease 105 Building to a prospective
          tenant at a Fixed Rent which is less than ninety-five percent (95%) of
          the Fixed Rent offered to Tenant in Landlord's Notice (the "Lesser
          Fixed Rent"), then, Tenant shall once again be entitled to notice
          ("Landlord's Second Notice") of the availability of the 105 Building
          at the Lesser Fixed Rent in the same manner as in subparagraph 3(A)
          above; upon giving Tenant Landlord's Second Notice, the provisions of
          subparagraph 3(A), (B) and (C) above shall apply as if Landlord's
          Second Notice were Landlord's Notice, provided, however, the time
          periods in each instance shall be reduced to five (5) business days.

     4.   The Option to Extend the Term contained in Paragraph 9 of the Second
          Lease Modification Agreement is hereby deleted.

     5.   Except as provided herein, all of the terms and conditions of the
          Lease, as amended above are in full force and effect and are confirmed
          as if fully set forth herein.

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                                                                  EXHIBIT 10.90

     IN WITNESS WHEREOF, the parties hereto have caused this Lease Modification
Agreement to be duly executed as of the day and year of first above written.


                                   HARTZ MOUNTAIN INDUSTRIES, INC.
                                               ("Landlord")


                              By:  /s/ Irwin A. Horowitz
                                   --------------------------------------
                                       Irwin A. Horowitz
                                       Executive Vice President

                                   BERNARD CHAUS, INC.
                                               ("Tenant")


                              By: /s/ Stuart S. Levy
                                  ---------------------------------------
                                      Stuart S. Levy