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Stock Market & Financial Investment News

News Breaks
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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November 21, 2014
16:13 EDTAPPAmerican Apparel names Chelsea Grayson as General Counsel
The Board of Directors of American Apparel announced the appointment of Chelsea Grayson as Executive Vice President, General Counsel, and Secretary of the company, effective as of December 15. Tobias S. Keller will continue to serve as Interim General Counsel until Grayson’s employment commences, at which time he has agreed to resign from such position. Chelsea Grayson has more than 15 years of experience in private practice as a corporate attorney with the law firms of Jones Day and Loeb & Loeb LLP, where she was a partner in the corporate groups of both firms.
November 14, 2014
13:39 EDTAPPBigger Capital calls for American Apparel's board to be reconstituted
Bigger Capital Fund and the Bigger Family, collectively owning more than 2M shares of American Apparel announced that they have delivered a letter to American Apparel's board. In the letter, Bigger Capital said, We write to you to express our serious and growing concerns with the company and provide the basis for our conviction that the board must be immediately reconstituted to replace David Danzinger and Allan Mayer with direct representatives of American Apparel's minority shareholders... We renew our call for the resignations of Messrs. Danzinger and Mayer for a number of reasons... we are becoming increasingly concerned that the new Board, led by Co-Chairmen Danzinger and Mayer, is not as committed to protect the interests of all shareholders as we had hoped. For example, this Board never bothered to respond to our July 17th letter or address our concerns in any form. At a time when the Company is suffering ever widening losses, is embroiled in a much publicized investigation of its former CEO, is still absorbing changes in its senior executive team, and the stock is taking a beating, the Board has a heightened responsibility to soothe shareholder concerns and assure us that all is being done to protect our investment. Such disregard of minority shareholders especially at this critical time is inexcusable... As things currently stand, American Apparel is continuing to sustain massive losses and erosion of shareholder value persists. The Company has massively underperformed peers on a profitability basis for years... Our expectation is that the Board will immediately engage with us to work constructively towards a solution along the lines laid out in this letter."

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