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Published
Sep 28, 2016
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American Apparel CEO Paula Schneider to step down in October

Published
Sep 28, 2016

American Apparel recently announced that Paula Schneider will step down from her role as CEO on October 3 after serving in the position for less than two years.


Paula Schneider, American Apparel CEO, will part ways with the company on October 3.


 
Schneider cites many reasons for her departure including the company’s debts, retail headwinds that have impacted specialty retailers in the US and the company’s pending sale. The American press obtained Schneider’s resignation letter that states that the upcoming sale “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 heavy heart, I’ve come to the conclusion it is time for me to resign as CEO.”
 
Since Schneider assumed the role of CEO, the company filed for bankruptcy, sold the Oak brand back to its founders Jeff Madalena and Louis Terrine and was taken to court by former CEO Dov Charney. Schneider focused on cutting costs and was met with backlash for her methods. She laid off 500 employees from the company and considered outsourcing production despite the brand’s ‘Made in LA’ identity.

American Apparel exited bankruptcy in February and in August, hired investment bank Houlihan Lokey to explore the company’s sale. The company scaled back its product offering and moved away from risqué marketing to focus on the products.
 
The American press also reported that American Apparel General Counsel and Chief Administrative Officer Chelsea Grayson is to succeed Schneider as American Apparel CEO.

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