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June 19, 2014
05:28 EDTAPPAmerican Apparel CEO suspended, John Luttrell named Interim CEO
The board of American Apparel voted to replace Dov Charney as chairman and notified him of its intent to terminate his employment as president and CEO for cause. It is expected that the termination will be effective following a 30-day cure period required under the terms of Charney’s employment agreement. The board suspended Charney from his positions as president and CEO, effective immediately, pending the expiration of the cure period. At the same time, the board appointed John Luttrell as Interim CEO. Luttrell, who has been with American Apparel since February 2011 and currently serves as executive vice president and CFO, will continue in those positions as well. Also effective immediately, the board appointed Allan Mayer and David Danziger as co-chairmen to replace Charney as chairman of the board. In accordance with the terms of his employment agreement, the board intends to request Charney’s resignation as a member of the board concurrently with the effective time of his termination. Mayer, who has been a member of the board since the company went public in 2007 and has served as its lead independent director for the past three years, said the board’s decision to replace Charney grew out of an ongoing investigation into alleged misconduct. Luttrell said American Apparel would remain committed to its sweatshop-free, Made in USA manufacturing philosophy. As a result of the management changes, the company may have been deemed to have triggered an event of default under its credit agreements and will be in discussions with its lenders for a waiver of the default.
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September 25, 2015
17:37 EDTAPPAmerican Apparel does not meet NYSE listing standards
On September 23, American Apparel received a notice from NYSE MKT stating that the Company does not meet continued listing standards of the Exchange as set forth in Part 10 of the NYSE MKT Company Guide. Specifically, the Notice states that, based on the Exchange's recent review, the Company was not in compliance with Section 1003(a)(iv) of the Company Guide because "it has sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, as to whether the Company will be able to continue operations and/or meet its obligations as they mature." As a result, the Notice states that the Company has become subject to the procedures and requirements of Section 1009 of the Company Guide. The Notice states that the Company must submit a plan of compliance to the Exchange by October 9 addressing how it intends to regain compliance with the continued listing standards of Section 1003(a)(iv) of the Company Guide by November 15. If the plan is accepted by the Exchange, the Notice states that the Company will be subject to periodic reviews including monitoring for compliance with the plan.

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