SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549



                                    FORM 8-K


                                 CURRENT REPORT


                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934



       Date of Report(Date of Earliest Event Reported): November 13, 2001



                                 CANDIE'S, INC.
             (Exact name of registrant as specified in its charter)



        Delaware                    1-10593                     11-2481903
(State or other jurisdiction      (Commission                (I.R.S. Employer
    of incorporation)             File Number)              Identification No.)



400 Columbus Avenue, Valhalla, New York                           10595
(Address of principal executive offices)                        (Zip Code)



Registrant's telephone number, including area code: (914) 769-8600



- --------------------------------------------------------------------------------
           Former name or former address, if changed since last report




Item 5.  Other Events

In the  afternoon of November 20, 2001 the Company was notified that on November
13, 2001 the Court in the Willow Creek Capital Partners, L.P., v. Candie's, Inc.
class action (the "Willow Creek Action")  pending in the United States  District
Court for the Southern  District of New York, issued an order which resolves the
claims in the separate action  commenced in December 2000 against  Candie's Inc.
(the  "Company")  by Michael  Caruso,  as trustee of the Claudio  Trust and Gene
Montasano  (collectively,  "Caruso").  The Court order  provided that Caruso may
participate in the Class settlement of the Willow Creek Action.

In addition to providing for Caruso's  inclusion in the Class  settlement of the
Willow Creek Action,  the  settlement  agreement  between the Company and Caruso
also  provides  for the  Company to pay to Caruso  equal  quarterly  payments of
$62,500,  up to a maximum  amount of $1  million,  over a period of four  years.
However,  the  Company's  obligation  to  make  these  quarterly  payments  will
terminate in the event that the last daily sale price per share of the Company's
common  stock is at least  $4.98  during  any ten days in any  thirty day period
within such four year period.  The Company will  recognize a charge to income of
$857,000 during the quarter ending January 31, 2002, representing the discounted
fair value of the future payments to Caruso referred to above.








                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                                     CANDIE'S, INC.


                                                     By: /s/ Neil Cole
                                                     Neil Cole
                                                     Chief Executive Officer and
                                                     President




Date: November 26, 2001