American Apparel (asi/35297) has hired fashion industry veteran Paula Schneider as CEO, officially cutting ties with founder Dov Charney, after an outside investigation into alleged misconduct and violations of company policy. At the same time, the supplier was contemplating an offer from a private equity firm to buy American Apparel for between $1.30 and $1.40 a share.
Several media outlets reported that the offer was from New York-based firm Irving Place Capital, though American Apparel didn’t initially name the firm in a statement confirming the offer. “The board takes these matters seriously, and it will evaluate this proposal in the ordinary course of business,” the supplier’s board of directors wrote in a statement. “The company remains focused on positioning American Apparel for a successful turnaround.”
"American Apparel (asi/35297) has hired fashion industry veteran Paula Schneider as CEO."
Schneider, who will be American Apparel’s first female CEO, comes to the company with extensive executive experience at fashion and retail companies. 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,” Schneider says.
American Apparel has been going through a time of great change. In the same release confirming the bid to acquire the company, the supplier announced that Allan Mayer and David Danziger, co-chairmen of the board, have stepped down, but will retain their seats on the board of directors. The company subsequently announced that board member Colleen Brown has been named chairperson of the board.