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American Apparel CEO Schneider Steps Down

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American Apparel can’t seem to catch a break. After filing for Chapter 11 bankruptcy in 2015, and dealing with former CEO and Founder Dov Charney’s shady business, the apparel retailer is still experiencing bumps in the road. This week, current CEO Paula Schneider announced that she will be stepping down from her position on Oct. 3, according to Women’s Wear Daily (WWD).

WWD obtained Schneider’s resignation letter, where she stated, “the [turnaround] plan has been laid out and much of the heavy lifting and the hard work has been done.”

“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,” she continued. “Therefore, after much deliberation, and with a heavy heart, I’ve come to the conclusion it is time for me to resign as CEO.”

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Schneider’s statement suggests that American Apparel is struggling in terms of its potential sale. But, according to WWD, a company source said it was Schneider’s own decision to leave and has nothing to do with either American Apparel’s bondholders or potential buyers.

Schneider will be succeeded by American Apparel’s General Council and Chief Administrative Officer Chelsea Grayson, who is currently in the process of transitioning into her new role. 

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