American Apparel's headquarters in downtown Los Angeles. Photo by John Schreiber.
American Apparel’s headquarters in downtown Los Angeles. Photo by John Schreiber.
American Apparel’s headquarters in downtown Los Angeles. Photo by John Schreiber.

Downtown Los Angeles-based American Apparel Inc. hired a veteran fashion executive to replace its suspended chief executive and founder, Dov Charney, the company announced Tuesday.

Paula Schneider has served as president or senior officer of a number of retail and apparel companies, including Warnaco, Gores Group, BCBG Max Azria, and Laundry by Shelli Segal.

Charney was suspended as president and CEO by the American Apparel board on June 18 for alleged misconduct and violations of company policy.

A special committee of the board oversaw an internal investigation into the allegations against Charney and determined that it would not be appropriate for him to be reinstated as CEO or as an officer or employee of the company.

Charney had meanwhile been serving as a consultant to the company, but that relationship was also terminated.

Interim CEO Scott Brubaker will continue to run the company until Schneider’s appointment becomes effective Jan. 5.

“We’re pleased that what we set out to do last spring namely, to ensure that American Apparel had the right leadership, has been accomplished,” said Allan Mayer, co-chairman of the board.

Schneider said American Apparel “has a unique and incredible story, and it’s exciting to become part of such an iconic brand. My goal is to make American Apparel a better company, while staying true to its core values of quality and creativity and preserving its sweatshop-free, Made in USA manufacturing philosophy.”

American Apparel has about 10,000 employees and operates 245 retail stores in 20 countries, along with a global e-commerce site that serves more than 60 countries worldwide and a wholesale business that supplies T-shirts and other casual wear to distributors and screen printers.

City News Service

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