American Apparel appointed five of its six new board members, including the CEO of RadioShack and its first female, Colleen Brown, former CEO of Fisher Communications. Former CEO and founder Dov Charney did not receive a seat.
The decision comes about one month after a corporate shake-up in which Charney was fired over the possible misuse of corporate funds and a sexual harassment investigation.
Amidst the public battle between Charney and the board, Charney teamed up with Standard General to acquire 43 percent of the company's shares, under the stipulation that he give up his voting rights. The agreement also allowed Standard General to name three new board members, and two others were to be mutually agreed upon by the firm and the company.
The two mutual picks included RadioShack (NYSE:RSH) CEO Joseph Magnacca, reported Reuters. It seems to be no coincidence that Standard General owns 9.8 percent of RadioShack's stock. The other mutually agreed upon board member was Brown, the only female board member.
However, the retailer's founder, Dov Charney, will not be returning to the board, and one of Standard General's three picks included one of its own partners, David Glazek.
"This slate of directors brings significant financial, retail and corporate turnaround expertise to the board," Glazek wrote in an email.
The fourth member chosen was Thomas Sullivan, a turnaround expert who also serves on Media General's board—Standard General owns 30 percent of Media General's stock.
Previous co-chairmen of American Apparel's board, Allan Mayer and David Danziger, will stay on as members. Mayer and Danziger led the charge against Charney's suspension.
A committee apart from the board is still investigating Charney's conduct to decide if he has a future with the company. One board member is left to be named by Standard General.
-See this Reuters article
-See this New York Times article
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