American Apparel’s president resigns
November 21, 2011 04:38 PM
The acting president of clothing manufacturer and retailer American Apparel Inc. has resigned. Tom Casey was appointed in October 2010 to work with CEO Dov Charney on improving the company’s operating procedures, the retailer says.
American Apparel gave no further details about Casey’s departure or who will replace him.
“In the past 12 months, we have executed on our strategic plan, improved sales and financial performance and enhanced our financial flexibility,” says Charney. “I appreciate Tom’s substantial contributions to our success and his help in shaping the Company’s future. Tom is a highly capable senior executive and I wish him well in his future endeavors.”
Prior to his position at American Apparel, No. 273 in Internet Retailer’s Top 500 Guide, Casey was executive vice president and chief financial officer at Blockbuster Inc., No. 42. Before that, he worked for 20 years as a financial advisor to retailers and consumer product manufacturers.
American Apparel operates an apparel and accessories e-commerce site, AmericanApparel.net, along with as 247 retail stores in 20 countries.
In April, the retailer warned of a possible bankruptcy, as throughout 2010 it faced higher raw materials costs, labor disruption from an ongoing immigration-related investigation, management turnover and financing problems.
However, total sales and e-commerce sales have been steadily improving this year. For the first quarter of 2011, the retailer reported a 28% jump in e-commerce sales and a 4.7% drop in total sales. For the second quarter, the retailer reported a 19% jump in web sales and flat total sales. For the third quarter, American Apparel reported a 15% increase in e-commerce revenue and a 4% increase in total sales.