Dive Brief:
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While American Apparel seemed to start a new chapter earlier this week when the struggling apparel retailer fired its founder and former CEO Dov Charney and hired Paula Schneider to be CEO, the drama may not be over yet.
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Two private equity firms are reportedly interested in taking over the company and returning Charney to its executive ranks. Charney has said he supports Schneider as CEO.
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A group of the company’s executives also released a letter opposing Charney’s ouster. Charney, for his part, says he turned down an offer to stay on in an advisory role, something he had already been doing.
Dive Insight:
When news broke Tuesday that Dov Charney was out and a woman with a significant amount of retail experience would be CEO, it seemed like a definitive move that would end the months of drama that has gripped the retailer. But there’s more to go, according to reporting by Bloomberg and others, with keen interest in a takeover by so far unnamed private equity firms with Charney’s interest — and his return — in mind.
The good news is that Charney himself is supportive of Schneider as CEO. In fact, one point of contention between the board and Charney was that he believed she should be able to name someone to the board. Shares of the company rose some 50% on the news of takeover interest.
