American Apparel director David Danziger resigns

Move part of a shake-up that followed a settlement with shareholder Jeffrey Kolb

American Apparel. Mr Danzinger’s resignation clears the way for chief executive officer Paula Schneider to take his spot, the Los Angeles-based retail chain said in a regulatory filing.
American Apparel. Mr Danzinger’s resignation clears the way for chief executive officer Paula Schneider to take his spot, the Los Angeles-based retail chain said in a regulatory filing.

American Apparel director David Danziger, who had served as co-chairman until December, resigned from the board at the weekend, part of a shake-up that followed a settlement with shareholder Jeffrey Kolb.

The move clears the way for chief executive officer Paula Schneider to take his spot, the Los Angeles-based retail chain said in a regulatory filing.

The company also will seek another independent director as part of an agreement last week with Mr Kolb, who had threatened to start a proxy battle for board seats.

The Kolb tussle was part of a broader fight with American Apparel founder and ex-CEO Dov Charney, who has been trying to reassert control at the company since his ouster last year.

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Mr Kolb previously worked for Mr Charney and was seen as his ally in a potential proxy contest. American Apparel is engaged in a separate legal showdown with Mr Charney over his firing.

The company has accused him of launching a “scorched earth campaign” to retake control of the retailer, in violation of an agreement covering his departure.

Earlier this month, a judge ordered Mr Charney to muzzle his criticism of American Apparel. Mr Danziger had served as co-chairman alongside Allan Mayer until about six months ago, when they ceded the role to Colleen Brown.

- Bloomberg