American Apparel appointed an interim chief executive Monday, three months after its founder and former CEO, Dov Charney, was fired for misconduct. Scott Brubaker, a managing director at professional services firm Alvarez & Marsal, will take charge of the embattled U.S. clothing brand until a more permanent successor to Charney is hired, the New York Times reported.
Brubaker will help the retailer stabilize after the clothing company, headquartered in Los Angeles, ran into financial troubles following Charney’s ousting. American Apparel approached Alvarez & Marsal earlier this month.
John Luttrell, American Apparel’s chief financial officer and acting CEO since Charney’s departure, will leave the company, the Wall Street Journal reported. He is being replaced as CFO by Hassan Natha, former CFO for media company Fisher Communications Inc.
American Apparel’s financial woes included more than $200 million in debt and interest payments totaling $13.5 million, which it owed bondholders in October. The company also defaulted on several loans, including one for $50 million from Capital One.
Charney, 45, was removed from his post as CEO of the retailer in June following revelations he misused company funds and exploited corporate apartments for nonbusiness-related purposes. Charney also faced several allegations of sexual harassment, including reportedly dancing naked in front of two female American Apparel employees.
The company gave Charney the choice of stepping down as CEO and remaining on board as a consultant or face firing. Charney refused to resign and was fired. American Apparel went about hiring new board members in July, including the first female director in the clothing company’s history.