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American Apparel hires new CEO

US clothing brand American Apparel has appointed Paula Schneider as its new chief executive.

GENERAL MERCHANDISE

American Apparel hires new CEO

US clothing brand American Apparel has appointed Paula Schneider as its new chief executive.

Due to take up her new role in January, she will succeed Dov Charney whose employment has been terminated.

American Apparel said Schneider had improved the financial performance and operational efficiencies of a number of global fashion brands. She has held senior roles at a number of retail and clothing companies including Warnaco, Gores Group, BCBG Max Azria, and Laundry by Shelli Segal.

Schneider said: "American Apparel has a unique and incredible story, and it's exciting to become part of such an iconic brand. 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."

Scott Brubaker, who has been serving as interim chief executive, will continue in post until Schneider joins the company after which time he will remain as a consultant to ensure an orderly transition.

David Danziger, co-chairman of the American Apparel board, said: "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. We remain grateful to Scott Brubaker for his hard work and invaluable insights towards improving our operations."

Charney was suspended as president and chief executive on 18 June for alleged misconduct and violations of company policy. Under terms of an agreement signed by Charney on 9 July, a special committee of the board oversaw an internal investigation into the allegations against him.

American Apparel said: “Based on this investigation, the special committee determined that it would not be appropriate for Mr Charney to be reinstated as CEO or an officer or employee of the company. While under suspension as CEO, Mr Charney had been serving as a consultant to the company. This relationship has now been terminated.”

Allan Mayer, co-chairman of the American Apparel board, added: "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. We are confident that Paula Schneider has the skills and background to lead the company to long-term success."

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