Ailing American Apparel Appoints Acting President
LOS ANGELES – Troubled retailer American Apparel has appointed former Blockbuster CFO Tom Casey as acting president. He will report to CEO and founder Dov Charney.
Charney has been working with Lion Capital, which amended its credit deal last week. Lion Capital’s Lyndon Lea and Charney are “working together on developing an enhanced strategic plan for the company’s future growth, including the hiring of new senior executives,” according to a statement by American Apparel.
Commenting on the hiring of Casey, Charney said, “We believe Tom will be instrumental in our efforts to continue to build our management team and bring additional operating disciplines to the business.”
“American Apparel presents a very special opportunity,” added Casey. “I admire American Apparel’s commitment to creative thinking and fair treatment of its textile and apparel workers. I am intrigued by the international appeal of the brand and the Company’s vertically integrated and ‘Made in USA’ business model. I see American Apparel in the early stages of its development and I believe that my experience can help shape the company’s future.”
American Apparel, which manufactures its own garments in Los Angeles, operates 280 stores in 20 countries. The company failed to report its quarterly earnings on time in August and warned that it was facing debt of $120.3 million.
