American Apparel is in for yet another round of changes. Women’s Wear Daily reported on Thursday that Paula Schneider, who joined the company in January 2015, just after the company’s founder, Dov Charney, had been ousted following an internal misconduct investigation, is leaving the troubled company, effective October 3rd. Schneider, under whose watch the company has undergone something of a noticeable revamp, will be succeeded by the company’s general counsel and chief administrative officer Chelsea Grayson.
In her resignation letter to the board, which was obtained by WWD, Schneider said “the sale process currently underway for all or part of the company may not enable us to pursue the course of action necessary for the plan to succeed nor allow the brand to stay true to its ideals. Therefore, after much deliberation, and with a heavy heart, I’ve come to the conclusion it is time for me to resign as CEO.” Schneider was tasked with rescuing the troubled brand, which has posted consecutive annual losses since 2010 and filed for Chapter 11 bankruptcy protection in October 2015.
The change comes on the heels of the recent departure of former Liz Claiborne Inc. chairman and ceo Paul R. Charron, who was appointed to lead the board in March. He was succeeded by Brad Scher. In a separate letter distributed to company employees today, Scher said American Apparel has “been evaluating opportunities to attract investors to fuel the growth of the brand. Business will continue as usual.”