Shakeup at American Apparel: CEO to step down

The saga continues at American Apparel.



Paula Schneider plans to step down as CEO of the apparel retailer on Oct. 3, according to yahoo.com, which cited a report by Women’s Wear Daily. Schneider will be replaced by the company’s general counsel and chief administrative officer, Chelsea Grayson.



It was also revealed that Paul Charron, former CEO and chairman of Liz Claiborne Inc., stepped down as board chairman of American Apparel in August. Charron was appointed to the board in March.



American Apparel is known to be exploring a possible sale of all or parts of the business



Schneider, a seasoned retail veteran, joined American Apparel in late 2014. She helped steer the chain through bankruptcy and initiated the first stages of a comprehensive turnaround plan. She also fought all attempts by founder and deposed CEO Dov Charney to return and take over the company.



In her resignation letter to the board, which was also obtained by WWD, Schneider said “the [turnaround] plan has been laid out and much of the heavy lifting and the hard work has been done.”



She went on to say “the sale process currently underway 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 a heavy heart, I’ve come to the conclusion it is time for me to resign as CEO.”



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