American Apparel Inc. has hired its fourth CEO since June and cut ties with controversial founder Dov Charney, the company announced today. American Apparel is No. 286 in the Internet Retailer Top 500 Guide.
Charney was fired in June in the wake of allegations of misconduct, but had remained with the company since then as a consultant. American Apparel’s announcement ends the company’s relationship with him, American Apparel says.
Retail industry veteran Paula Schneider becomes the new CEO of the retailer, taking over Jan. 5. Schneider previously served as president of swimwear manufacturer Warnaco and president of sales at women’s fashion brand BCBG Max Azria.
“My goal is to make American Apparel a better company, while staying true to its core values of quality and creativity and preserving its sweatshopfree, Made in USA manufacturing philosophy,” Schneider says.
She succeeds Scott Brubaker, who took over as interim CEO back in September. Brubaker had succeeded John Luttrell, the company’s former chief financial officer who was elevated to CEO after Charney was ousted. According to a company press release, Brubaker will remain with the company as a consultant while Schneider transitions into the CEO role.
For the third quarter ending Sept. 30, the company reported:
- Net sales of $155.87 million, down 5.2% from $164.54 million during the same three-month period in 2013.
- Online sales of $13.16 million, down 3.5% from $13.64 million during the same period in 2013.
For the nine months ending Sept. 30, the company reported:
- Net sales of $455.36 million, down 2.0% from $464.84 million a year ago.
- Online sales of $42.91 million, down 0.3% from $43.04 million a year ago.