American Apparel Inc. late Friday said that acting president Tom Casey, who was brought in to help turn around the troubled company a year ago, has resigned.
The Los Angeles manufacturer and retailer, which had been hurt by slow sales during the recession and an immigration raid that crippled its manufacturing capacity, hired Casey in October 2010. He played a key role in revamping operating strategy when it was feared the company would default on a loan made by Lion Capital, a New York financing group.
Casey helped the company secure a $14.9 million investment in April from a group of Canadian investors. Sales at the company’s trendy boutiques have remained sluggish in the third quarter, but the company’s wholesale and Internet sales showed strong improvement and its loss per share fell from 13 cents to 7 cents.
“In the past 12 months, we have executed on our strategic plan, improved sales and financial performance and enhanced our financial flexibility,” said Chief Executive Dov Charney in a statement. “I appreciate Tom’s substantial contributions to our success and his help in shaping the company’s future.”
Casey has more than 25 years’ experience in financial management and strategic planning, especially for companies undergoing strategic change in the retail and consumer products industry. In the announcement, he praised American Apparel calling it “a pleasure working with Dov and his team.”
Shares earlier closed down 2 cents, or 2.7 percent, to 75 cents on the New York Alternet.