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The Board of Directors of American Apparel, Inc. (NYSE MKT:
) today
announced that it has appointed veteran fashion executive Paula Schneider as
Chief Executive Officer, effective January 5, 2015. This appointment follows
the termination of Dov Charney, former President and Chief Executive
Officer, for cause in accordance with the terms of his employment agreement.
Scott Brubaker, who has been serving as Interim CEO, will continue in the
post until Ms. Schneider joins the company, after which he will remain as a
consultant to ensure an orderly transition.
An experienced executive with an extensive track record in design,
merchandising, sales, manufacturing, finance, licensing and human resources,
Ms. Schneider has a well-earned reputation for improving the financial
performance and operational efficiencies of numerous global fashion brands.
She has served as president or senior officer of a number of retail and
apparel companies, including Warnaco, Gores Group, BCBG Max Azria, and
Laundry by Shelli Segal.
"American Apparel has a unique and incredible story, and it's exciting to
become part of such an iconic brand," said Ms. Schneider. "My goal is to
make American Apparel a better company, while staying true to its core
values of quality and creativity and preserving its sweatshop-free, Made in
USA manufacturing philosophy."
"This company needs a permanent CEO who can bring stability and strong
leadership in this time of transition, and we believe Ms. Schneider fits the
bill perfectly," said David Danziger, Co-Chairman of the Board. "We remain
grateful to Scott Brubaker for his hard work and invaluable insights towards
improving our operations."
Mr. Charney was suspended as president and CEO by the Board on June 18 for
alleged misconduct and violations of company policy. Under terms of an
agreement signed by Mr. Charney on July 9, a special committee of the Board
oversaw an internal investigation conducted by FTI Consulting into the
allegations against Mr. Charney. Based on this investigation, the special
committee determined that it would not be appropriate for Mr. Charney to be
reinstated as CEO or an officer or employee of the Company. While under
suspension as CEO, Mr. Charney had been serving as a consultant to the
Company. This relationship has now been terminated.
"We're pleased that what we set out to do last spring -- namely, to ensure
that American Apparel had the right leadership -- has been accomplished,"
said Allan Mayer, Co-Chairman of the Board. "We are confident that Paula
Schneider has the skills and background to lead the company to long-term
success."
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