Jessica Simpson

American Apparel taps top lawyer as CEO as sale rumors swirl

American Apparel taps top lawyer as CEO as sale rumors swirl

American Apparel’s incoming chief executive is a lawyer with a background in mergers and acquisitions and little retail experience — yet another sign that the troubled retailer may be heading for a sale soon.

Chelsea Grayson has served as general counsel for American Apparel for nearly two years. She is stepping into a role that will be vacated Monday by Paula Schneider, the CEO brought aboard last year to turn around the company’s fortunes.

Schneider’s departure marks the second recent loss for the Los Angeles company, whose racy advertising and colorful fashion basics made it an industry darling before it slid into a...

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