American Apparel Inc. said Monday that David Danziger, an
auditor who had sat on the retailer's board since 2011, resigned
and has been replaced by Chief Executive Paula Schneider.
The resignation comes after American Apparel last week reached
an agreement with shareholder Jeffrey Kolb, by which he agreed to
withdraw two candidates he intended to nominate to the company's
board. In turn, the retailer agreed to form an advisory committee
that will "provide insights, guidance and strategic input" for its
chief executive. American Apparel also agreed to "use reasonable
efforts" to identify a new independent director to fill a vacancy
before its 2016 annual meeting.
The board shake-ups come as American Apparel continues to tussle
with the company's former Chief Executive, Dov Charney.
Last week, the retailer said Mr. Charney agreed to a temporary
restraining order granted by a Delaware court. The order prevents
Mr. Charney from trying to remove any of the fashion retailer's
board members and restrains him from making or prompting any
statements that disparage the company or its current, former or
future employees, according to the company.
Mr. Charney, who was terminated in December following
allegations of misconduct and of violating company policy, has
filed a string of lawsuits against his former employer.
Arbitrators have ordered retailer American Apparel to pay more
than $3 million to resolve several claims of sexual harassment and
defamation against the company and Mr. Charney, according to court
documents.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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