Dov Charney Signs New Three-year Contract with American ApparelMarch 28, 2012 By Kyle Richardson
Dov Charney, chairman and chief executive officer of Los Angeles-based American Apparel, has signed a new contract with the company. Promo Marketing has learned that Charney, who also founded American Apparel, signed an agreement to continue in his roles with the company for the next three years, as reported in the company's Security and Exchange Commission filing this week.
Under the agreement, signed on March 22, Charney will continue to serve as CEO for an initial term of three years, beginning April 2, 2012. The agreement further stipulated that it will automatically extend for successive one-year periods after that term, unless stated otherwise.
The announcement comes after several positive moves by the company since the beginning of the year. After a difficult 2011, the company has reported three successive months of increased sales, including substantial increases in the wholesale business. American Apparel also announced two high-level appointments in February.
Most recently, the company secured an $80 million line of credit from Crystal Financial LLC. Analysts see the recent investments and new contract as a sign of renewed confidence and faith in Charney's direction for the company.
For more information, visit www.americanapparel.net.