American Apparel is to lose its second CEO is less than two years when Paula Schneider leaves on 3 October, according to reports.
Schneider was appointed to lead the troubled US retailer in January 2015, after its founder and previous CEO, Dov Charney, was ousted. Charney had been associated with several controversial lawsuits.
Charney founded the company in 1989 and it rapidly became one of the most popular US brands in the world. However, it has suffered a number of setbacks and controversies in the past decade. It has not posted a profit since 2009 and filed for bankruptcy in October 2015.
The company officially came out of bankruptcy in February 2016, but has continued to struggle. Schneider stated in her resignation letter, seen by WWD, that she had concerns about an ongoing deal to sell the company to new investors.
“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,” the letter reads.
“Therefore, after much deliberation, and with a heavy heart, I’ve come to the conclusion it is time for me to resign as CEO.”
Chief administrative officer Chelsea Grayson and the general counsel will take on her duties while a replacement is sought, WWD reports