American Apparel will soon have its fifth CEO in two years
September 23, 2016 03:52 PM
Troubled apparel manufacturer and retailer American Apparel Inc. will soon be on its fifth CEO in two years.
Paula Schneider will be leaving the company, a source close to the situation confirms. The news was first reported by Women’s Wear Daily. Schneider is expected to leave Oct. 3 and current chief administrative officer Chelsea Grayson is expected to be promoted to the top role. Schneider’s departure follows that of chairman of the board Paul Charron. Charron was named chairman in March and has since parted ways with the company. Charron will be replaced as chairman of the board by Brad Scher.
An American Apparel spokeswoman declined to comment.
Schneider took the reins in January 2015, succeeding Scott Brubaker, who was named interim CEO in September 2014. Brubaker replaced former chief financial officer John Luttrell, who was promoted to interim CEO after American Apparel’s board of directors fired CEO and founder Dov Charney.
American Apparel, No. 338 in the Internet Retailer 2016 Top 500 Guide, did an Internet Retailer-estimated $62.1 million in online sales last year. The company filed for Chapter 11 bankruptcy last faIl after years of losses and its split the controversial Charney. It emerged from Chapter 11 in February after a judge approved a reorganization that handed the company to senior lenders.