American Apparel’s Former Co-Chairman Quits Board Amid Shake-Up

LOS ANGELES, United States — American Apparel Inc. director David Danziger, who had served as co-chairman until December, resigned from the board on Sunday, 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 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. Kolb previously worked for Charney and was seen as his ally in a potential proxy contest.

American Apparel is engaged in a separate legal showdown with 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 Charney to muzzle his criticism of American Apparel.

Danziger had served as co-chairman alongside Allan Mayer until about six months ago, when they ceded the role to Colleen Brown.

By Nick Turner; editor: Molly Schuetz.