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Paula Schneider replaces Charney as CEO of American Apparel

By Prachi Singh

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The Board of Directors of American Apparel has appointed veteran fashion executive Paula Schneider as Chief Executive Officer, effective January 5, 2015. This appointment follows the termination of Dov Charney, former President and Chief Executive Officer, for cause in accordance with the terms of his employment agreement. Scott Brubaker, who has been serving as Interim CEO, will continue in the post until Schneider joins the company, after which he 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, adding, “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 Schneider fits the bill perfectly," said David Danziger, Co-Chairman of the Board.

Charney was suspended as President and CEO by the Board 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 allegations against him. 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, he had been serving as a consultant to the company, the relationship now stands terminated.

American Apparel
Paula Schneider