United states Apparel has fired CEO Dov Charney half a year after suspending him for so-called misconduct.
The clothing merchant stated on Tuesday it had appointed Paula Schneider, a veteran manner manager, as his replacement. Schneider has formerly worked at clothes team Warnaco and women’s attire organization Big Strike, takes the reins of this struggling clothes store on January 5, 2015.
United states Apparel says it's terminated Charney, who was taken off the CEO part in June following the organization alleged he had misused business money and infraction of intimate harassment guidelines. Over the years, Charney has faced repeated accusations of sexually harassing workers as well as discriminating against less appealing staff from the grounds which they undermined the corporate aesthetic.
Charney was serving as an expert into company lately, but United states Apparel stated on Tuesday which he happens to be terminated for cause.
Charney, who founded American Apparel 25 years back, was replaced by interim CEO John Luttrell, who also served as the business’s primary financial officer. But, Luttrell had been removed from both roles in September, whenever recovery expert Scott Brubaker of restructuring company Alvarez & Marsal took over since the brand new interim CEO. Brubaker will continue in that part until Schneider gets control during the early January.
David Danziger, co-chairman of United states Apparel’s board, said in a declaration the store “needs a permanent CEO who can deliver security and strong leadership inside time of transition, and we also believe Ms. Schneider meets the balance perfectly.”
As soon as one of several trendier, youth-focused retailers in the market, United states Apparel has actually seen its sales fall off in recent years. The company’s same-store sales declined 7percent last quarter therefore reported another net reduction.
In a statement, Schneider stated “My goal is to make United states Apparel a far better company, while remaining true to its core values of high quality and imagination and preserving its sweatshop-free, manufactured in American production philosophy.”
Gretchen Francis