Struggling fashion retailer American Apparel announced the hiring of an interim CEO. Scott Brubaker, managing director at Alvarez & Marsal, will take over the position three months after the board ousted the controversial CEO and founder Dov Charney.
Since Charney was kicked out, John Luttrell has been serving as interim CEO and CFO. Luttrell is resigning from the company, reported Reuters.
The company also named a new CFO, Hassan Natha, a former Nike executive.
Charney was fired in June due to an alleged misuse of funds and possible sexual harassment of a former employee. He later teamed up with Standard General to amass a large stake in the company, however, the hedge fund decided to replace all of American Apparel's board in return for about $25 million in aid. It did not weigh in on whether Charney should return as CEO.
Alvarez & Marsal was recently hired by Standard General to support American Apparel's finance department. Standard General controls about 44 percent of the brand since Charney sold his stake in the company as collateral for a loan.
As of June, American Apparel reported a debt of more than $215 million.
-See this Reuters article
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