American Apparel Names New CEO
American Apparel has hired a new CEO — a lawyer with a background in mergers and acquisitions. Chelsea Grayson has served as general counsel for American Apparel for almost two years. She will now be the top executive when Paula Schneider, the CEO brought aboard last year to turn around the company’s fortunes, vacates the position on Monday. Schneider will be the company’s second recent loss. Chairman Paul Charron left American Apparel last month.
Total Retail’s Take: All signs (and rumors) point to American Apparel being sold. The Los Angeles Times reports that two anonymous sources said he company is hunting for a buyer, and with a M&A lawyer now at the helm, the troubled retailer may be hanging a “for sale” sign outside its headquarters. Analysts say the two most likely types of buyers are either a branding and licensing company or a private equity firm. Experts also report that American Apparel may have to file for bankruptcy to lure a buyer. No matter the decision, the struggling retailer needs to figure something out before it’s too late (and Don Charney emerges as a buyer).