WSJ announced that American Apparel Names New Board in Step to Resolve Leadership Crisis, the crisis being that Dov Charney's sexist and abusive ways have finally caught up to him.
The new board consists of David Glazek, a partner with Standard General, a hedge fund that has voting control over a large block of American Apparel shares; Thomas J. Sullivan, a director of Media General Inc. Colleen B. Brown, a director of TrueBlue Inc.; and Joseph Magnacca, the chief executive of RadioShack Corp. Ms. Brown will be the first woman on American Apparel's board, noteworthy given the charges of sexual harassment that have dogged Mr. Charney.
Collen B Brown has previously served as the chief executive of media firm Fisher Communications, we trust she knows a thing or two about branding.
The board change is part of a deal with New York investment firm Standard General, which recently extended a $25-million financial lifeline to American Apparel which has had financial troubles for some time. Standard General controls a nearly 44% stake in the retailer. As part of the deal with Standard General, Dov Charney agreed to resign from American Apparel's board. David Glazek, a partner at Standard General, will also join the board.
“This slate of directors brings significant financial, retail, and corporate turnaround expertise to the board," said. Glazek
As part of the agreement, Charney and four members of the board are resigning. Only David Danziger and Allan Mayer will remain; they took on the joint role of co-chairmen after Charney was voted out as chairman and suspended as CEO on June 18 for alleged misconduct.