American Apparel boss Paula Schneider, who was appointed to engineer a turnaround, has resigned amid reports of a possible sale.
In a letter by Schneider, obtained by Women’s Wear Daily, she wrote: “The sale process currently under way for all or part of the company may not enable us to pursue the course of action necessary for the plan to succeed nor allow the brand to stay true to its ideals.
“Therefore, after much deliberation, and with a heavy heart, I’ve come to the conclusion it is time for me to resign as CEO.”
Schneider pointed to the company’s debts and “macroeconomic headwinds in retail, that have proven challenging for American Apparel along with most other specialty retailers in the US”.
She arrived as chief executive early last year after the chain’s founder and former chief executive Dov Charney left the retailer following allegations of misuse of company funds, violation of company policy and misuse of corporate assets.
Schneider will reportedly be replaced by American Apparel’s general counsel and chief administrative officer Chelsea Grayson, on October 3.
American Apparel has yet to respond to a request for comment.