AMERICAN APPAREL's CEO, Paula Schneider, who was brought on board at the start of 2015 to help turnaround the fortunes of the headline-hitting retailer, has stepped down from her role at the company as it reportedly moves closer to a sale.
In her resignation letter, which was obtained by WWD, Schneider states that the “sale process currently under way for all or part of the company may not enable us to pursue the course of action necessary for the plan to succeed nor allow the brand to stay true to its ideals. Therefore, after much deliberation, and with heavy heart, I’ve come to the conclusion it is time for me to resign as CEO.” She cited the company's large debts and “macroeconomic headwinds in retail, that have proven challenging for American Apparel along with most other specialty retailers in the US”, as specific hindrances on her watch.
Schneider took decisive action during her tenure at the label famous for its on-trend basics, filing for Chapter 11 bankruptcy 10 months into her role in a move that the company said it hoped would enable it to start rebuilding the brand by slashing its debt from $300 million to $135 million. The company emerged from bankruptcy in February this year, and last month it was reported that global investment bank Houlihan Lokey has been hired to sell the company and was reaching out to the "usual suspects" as potential buyers.
American Apparel CEO Out
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