Dive Brief:
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American Apparel board member David Danziger Monday abruptly left his position, which he had held since 2011.
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CEO Paula Schneider will take his post.
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Investor, financial advisor, and trader Michael Bigger, who owns a 13% stake in the retailer, last year urged the resignation of Danziger and Allan Mayer, calling them “discredited” and saying they were “directly responsible for the value erosion and reputational harm to the Company and as a result have lost the confidence and support of the shareholders and should immediately resign.”
Dive Insight:
Danziger’s departure comes amidst continued strife at the company, which is faced with several lawsuits from ousted founder and former CEO Dov Charney and which has recently headed off a proxy fight.
There are some hints that all of this could be headed to some kind of resolution after a year of high drama. In exchange for ending the recent proxy fight begun by investor Jeffrey Kolb, the retailer has agreed to form an advisory committee that will find an independent director. That committee will be led by Gene Montesano, the co-founder of Lucky Brand jeans and Kolb’s candidate in the fight.
Montesano has been nominated to the retailer’s board before, in December at the behest of a group of investors allied with Charney.