American Apparel Appoints Board Chairwoman, Evaluates Acquisition Proposal
The board of directors for Los Angeles-based American Apparel Inc. announced Dec. 22 its new chairperson and that it received a bid to acquire the company.
As of last week, board co-chairs Allan Mayer and David Danziger have stepped down as co-chairmen, but have remained as board members. Board member Colleen B. Brown has stepped up to fill the chairperson role.
“It’s time to focus on the work ahead of us and push this company to reach its full potential,” said Brown. “This is a pivotal moment for American Apparel, and I believe the company is poised for a significant turnaround. It will be very rewarding to work with an executive of newly appointed CEO Paula Schneider’s caliber, and I thank Allan and David for their diligent efforts as co-chairmen of the board.”
Brown, who joined the board in August, has served as chief executive and board member of publicly traded companies. She has been instrumental in turning around companies, returning them to profitability and recognized for her contribution to enhancing shareholder value.
“I’m looking forward to working with Colleen—we have the same commitment, work ethic and goals for American Apparel,” Schneider said.
“For the good of the company, we pushed hard for Colleen to take the post, and we’re delighted she has. She and Paula Schneider have powerful and complementary expertise that will be invaluable to American Apparel. Both women are strong leaders, and together they will be a tremendous force for growth and positive change at American Apparel,” added Mayer.
The board confirmed that the company received an "indication of interest to acquire the company for $1.30 to $1.40 per share." The board is evaluating the proposal.
“The board has made progress this year, and I believe we will look back and mark this as an important turning point,” said Danziger. “And we’re ending the year by establishing an updated code of conduct that will serve as an important guide for our company going forward. Step-by-step, we are transforming this company and positioning it for success.”
Related story: American Apparel Terminates Charney, Names New CEO