American Apparel Inc.’s shares jumped more than 10 percent Friday after the company hired Blockbuster Video’s former chief financial officer as acting president. Tom Casey will provide assistance to the struggling Los Angeles apparel maker’s founder and chief executive, Dov Charney.

Casey left Blockbuster in September before the video rental company filed for Chapter 11 bankruptcy. He will play a key role in developing American Apparel’s operating strategy in the wake of a deal negotiated by Charney with his company’s largest creditor, Lion Capital, in order to avoid a default.

Lion Capital agreed to change covenants in its agreements and pledged to work with Charney to hire several senior executives to help manage the apparel company, which has struggled through sales slumps and an immigration raid that caused the company to lose many of its production workers. The company, which also operates about 280 retail stores, earlier this year released a “going concern” warning about the potential of a bankruptcy filing.

Casey has more than 24 years’ experience in financial management and strategic planning. Before he worked for Blockbuster he was a financial advisor to companies undergoing strategic change in the retail and consumer products industry. He also has been a managing director for Deutsche Bank Securities Inc. and held investment banking positions with Citigroup, Merrill Lynch and Dillon Read & Co.

“American Apparel presents a very special opportunity” he said in a statement. “I admire American Apparel’s commitment to creative thinking and fair treatment of its textile and apparel workers. I am intrigued by the international appeal of the brand and the company’s vertically integrated and Made in USA business model.”

Shares closed up 12 cents, or 10.3 percent, to $1.28 on the New York Alternet.