Business Notes FASHION

The Justice Department last week dropped its investigation of Jordache Enterprises, the giant jeansmaker, thus wrapping up one of the rag trade's most sordid sagas. It began in 1986 when 50 IRS agents stormed Jordache's New York City headquarters, confiscating 1 million documents and virtually paralyzing the company's operations. Jordache officials suspected that their archenemies at Guess, Inc. were somehow involved. Sure enough, the raid and subsequent grand jury criminal case against Jordache was the result of information supplied by Guess to Ronald Saranow, a top IRS official.

* A House subcommittee concluded last summer that Guess used improper influence, including a job offer, to persuade Saranow to go after Jordache. In addition, the IRS agent who spearheaded the raid is now the target of two federal investigations.

That is small consolation to Jordache, which spent more than $2 million on its legal defense. Said Chairman Joe Nakash: "Nothing can erase four years of humiliation and embarrassment caused by the greed and viciousness of others."