American Apparel's Done With Dov Charney

That's it for Dov Charney.

American Apparel's board of directors appointed veteran fashion executive Paula Schneider as CEO, effective Jan. 5, 2015, to replace controversial founder and former CEO Dov Charney, who has been terminated for cause. Scott Brubaker, who has been filling in as interim CEO, will continue in his role until Schneider joins the company, and will remain as a consultant to ensure an orderly transition.

An experienced executive with an extensive track record in design, merchandising, sales, manufacturing, finance, licensing and human resources, Schneider has a well-earned reputation for improving the financial performance and operational efficiencies of numerous global fashion brands. 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," said Schneider. "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."

"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, board co-chairman. "We remain grateful to Scott Brubaker for his hard work and invaluable insights towards improving our operations."

The board suspended Charney as president and CEO on June 18 for alleged misconduct and violations of company policy. Under terms of an agreement signed by Charney on July 9, a special committee of the board oversaw an internal investigation conducted by FTI Consulting into the serious allegations against the company founder. Based on this investigation, the special committee determined that it would not be appropriate for Charney to be reinstated as CEO or an officer or employee of the Company. While under suspension as CEO, Charney had been serving as a consultant to American Apparel, but this relationship has now 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."
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