In-house Counsel

Former Loeb & Loeb Partner Will Replace CEO of American Apparel
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Summary: Chelsea Grayson has been promoted to CEO of American Apparel. 

Former Loeb & Loeb partner Chelsea Grayson is embarking on a new position—as CEO of fashion retailer, American Apparel. According to Bloomberg Big Law Business, current CEO Paula Schneider will exit next month.

  
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American Apparel is well-known for its simplistic but hip clothing style and racy advertisements. In the past few years, it has struggled, resulting in a bankruptcy and the ouster of its founder Dov Charney, who was plagued with sexual harassment allegations. Charney’s allegedly overtly sexual demeanor trickled down into what critics say was a toxic work environment and inappropriate branding.

Big Law Business said that in Schneider’s resignation letter, she expressed concern that the brand may not “stay true to its ideals” if it sells to a third party. In February, the company emerged from bankruptcy and stated that it may sell its assets.

Grayson joined American Apparel in 2014 as general counsel and chief administrative officer. She was responsible for the legal department and human resources.

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Grayson said she left Loeb & Loeb to work at American Apparel because she saw great potential.

“I enjoy a good turnaround — but only if I can see that the turnaround has a shot,” Grayson said to Big Law Businss in February. “In this case, I could see it. I’ve been following the brand, I’ve been a customer of the brand, and I’ve got a teenage daughter — so I know the brand really well. I could tell that the brand was strong enough on it’s own that it could experience a successful turnaround.”



American Apparel operates in downtown Los Angeles, and it describes itself as the largest clothing manufacturer in North America.

Source: Bloomberg Big Law Business



 

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