American Apparel names outsider as interim CEO, hires new finance head
American Apparel Inc., trying to move beyond a summer of upheaval, named a turnaround expert as its as its interim CEO and a former Nike executive as chief financial officer.
Scott Brubaker, a managing partner at turnaround firm Alvarez & Marsal, was named interim chief executive, succeeding John Luttrell, who had been interim CEO as well as the Los Angeles retailer’s finance chief.
Brubaker has served in interim and advisory positions for a number of retailers and manufacturers, according to the company. Hassan Natha, a former Nike executive, was named to replace Luttrell as chief financial officer.
The executive shakeup comes as American Apparel tries to get past months of turmoil after its board ousted Dov Charney as chairman and suspended him as chief executive in June for alleged inappropriate behavior. Charney is now a paid consultant for the company pending the results of an investigation into his conduct.
Allan Mayer, American Apparel’s co-chairman, said Brubaker and Natha would bolster the retailer’s executive ranks.
“We are confident that their experience and leadership will help the company achieve its goals,” he said in an announcement of the moves.
The new executives face a daunting task to help American Apparel turn around its financial fortunes. It lost about $270 million in the last four years and is deeply in debt. In March, it sold $28.6 million in stock to meet debt obligations.
The retailer recently replaced all but two of its board members with new directors, including the company’s first two female board members. One of the female directors, Colleen B. Brown, is a former CEO of media firm Fisher Communications; Natha, the newly appointed finance chief, also worked at Fisher as chief financial officer.
Overhauling the board was part of American Apparel’s deal with New York investment firm Standard General, which extended the company a $25-million financial lifeline. Standard General controls a nearly 44% stake in the retailer through a cooperative stock-buying arrangement with Charney.
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