Second Board Member Bails on American Apparel

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Another change has hit the board of directors of embattled downtown L.A. apparel maker and retailer American Apparel Inc.

David Danziger resigned from the board over the weekend and was immediately replaced by Chief Executive Paula Schneider, the company announced in a Securities and Exchange Commission filing on Monday. Schneider was tapped to run the company in December after the board fired founder and former Chief Executive Dov Charney.

Danziger had been a member of the board since June 2011 and chaired the audit committee. His term would have expired at the 2017 annual stockholders meeting.

The action followed the agreement reached between American Apparel and shareholder Jeffrey Kolb, who sought to nominate two people for board seats at the company’s July 16 annual meeting.

In exchange for not making those nominations, the company agreed to identify and appoint a retail veteran to serve as an independent director.

Danziger is not the first board member to leave this year. Robert Mintz, a director at former American Apparel lender Lion Capital of London, resigned on March 5. He was replaced by Jeff Chang, another Lion director.

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