American Apparel To Seat New Director
Rupari Foods' CEO Robert Mintz To Fill Open Director Slot
The board of directors for Top 40 supplier American Apparel (asi/35297) will soon have its eighth member, following a nomination by the clothing maker’s longtime lender Lion Capital. The equity firm, which holds warrants to buy 12% of American Apparel’s stock and the right to two board positions, has designated Rupari Foods’ CEO Robert Mintz to fill an open director slot. The decision was made public in a filing last week.
Mintz, according to a report in the Wall Street Journal, is a former schoolmate of American Apparel founder Dov Charney. The Journal also cites sources who claim a decision on Charney’s future at the firm could be announced shortly as an independent board committee has been briefed on the results of an investigation. Charney was dismissed from American Apparel two months ago amid allegations of misconduct. He has since been fighting to regain his standing at the firm, with his attorney calling the allegations baseless.
As part of a financial reshuffling, Standard General recently purchased a $10 million loan Lion Capital had previously furnished to American Apparel. Standard General now controls a 44% stake in American Apparel and has committed up to $25 million to support the clothing company. Since the Standard General deal, American Apparel has seated five new board members, including two women – a first for the company. Mintz will become the sixth new director.
Last month, American Apparel announced flat Q2 sales of $162 million, although revenue from wholesale operations – which include promotional apparel sales – was sharply higher. Ranked by Counselor as the 14th largest supplier in the industry, American Apparel reported 2013 North American ad specialty sales of $99.2 million, a year-over-year increase of 2.5%.