American Apparel Terminates Charney, Names New CEO
The board of directors for Los Angeles-based American Apparel announced yesterday its appointment of veteran fashion executive Paula Schneider as CEO—the first female to have that post at American Apparel. Interim CEO Scott Brubaker will continue in the role until Schneider joins the company Jan. 5, at which point he will become a consultant to ensure an orderly transition. Dov Charney, the company's founder and former president and CEO who was suspended in June, officially has been terminated for cause in accordance with the terms of his employment agreement.
"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."
Schneider, having an extensive track record in design, merchandising, sales, manufacturing, finance, licensing and human resources, has served in various senior capacities at retail and apparel companies, including BCBG Max Azria, Gores Group, Laundry by Shelli Segal and Warnaco.
"American Apparel has a unique and incredible story, and it's exciting to become part of such an iconic brand," said Schneider, who has a reputation for improving financial performance and operational efficiency of numerous global fashion brands. "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."
Charney, who was suspended as president and CEO June 18 for alleged misconduct and violations of the company policy, remained a company consultant during an investigation into his conduct. Charney signed an agreement July 9, allowing a special committee of the board to launched that internal investigation into his conduct that was led by FTI Consulting. Upon review of the investigation, the board determined it would not be appropriate to reinstate Charney. The consulting relationship also has 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."
For more information, visit www.americanapparel.net.
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