Two American Apparel Directors Resign

0

American Apparel Inc. on Tuesday said that two board members resigned.

In a regulatory filing, the Los Angeles apparel maker and retailer said that Mark Samson and Mark Thornton resigned on Friday. The company had announced that day that two people had been elected to the board on June 24, one who would take a seat immediately to fill an existing vacancy and the other waiting until another vacancy occurred.

Samson and Thornton had been directors since the company went public in a December 2007 reverse merger, The company said in the filing that the men had not resigned in relation to disagreements “on any matter relating to the company’s operations, policies or practices.” But media reports over the weekend cited sources saying that the former directors had unsuccessfully pushed for Chapter 11 reorganization earlier this year.

American Apparel instead was able to raise $15 million in April from a private investment group led by Canadian financier Michael Serruya. The group has the option to add to its equity stake by up $28 million over the next several months.

The company now has six directors, including Chief Executive Dov Charney, and may fill another vacant seat in the next several months.

American Apparel shares closed unchanged at 91 cents Tuesday on the NYSE Amex exchange.

No posts to display