Founder Of The US AA Sacked The Group'S Share Price Surged More Than 20%

U.S.A

Retailer American Apparel Inc. (NYSE MKT:APP) recently issued a notice announcing the dismissal of founder Dov Charney.

News stimulated American Apparel Inc. (NYSE MKT:APP) surged more than 20% after the market.

Dov Charney in June 18th this year has been American Apparel Inc. (NYSE MKT:APP) to misuse public funds and sexual harassment subordinates and other "misconduct" as a reason to stop all the duties, including the chairman, President and CEO.

The group appointed the special board of directors to conduct an internal investigation of Dov Charney.

Reuters quoted the news as saying that the group had planned to retain the Dov Charney Consultant position to avoid its legal proceedings, and lawyers from both sides held consultations for several weeks, but the plan was rejected earlier this month.

However, Bloomberg news pointed out that the board hoped to reach a settlement with Dov Charney instead of terminating the appointment, but Dov Charney did not accept the presence of the consultant as a consultant.

After expelling Dov Charney,

(NYSE MKT:APP) has appointed the former chief financial officer John Luttrell and the external business consultant Alvarez Marsal LLC Scott general manager Scott Brubaker as interim CEO.

In Tuesday's announcement, American Apparel Inc. (NYSE MKT:APP) announced that Paula Schneider will take over the position of chief executive from January 5th.

Paula Schneider is currently the president of the retail group ESP Group Ltd., previously serving Warnaco Group and BCBG Max Azria.

And clothing group.

Dov Charney said in a statement on Tuesday that it was "disappointed at the current situation", but "as the largest shareholder", he was "proud of the American Apparel he founded, and he is confident that he will maintain a strong relationship with the group in the years ahead."

Dov Charney had a 27% stake in American Apparel Inc. (NYSE MKT:APP) before being deported. In July, it increased its shareholding ratio to 42.98% by the Standard hedge LP of New York hedge fund with its existing mortgage loan agreement, becoming the largest shareholder of the group, but immediately pferred all its shareholdings and voting rights to Standard General.

Standard General LP subsequently reorganized the American Apparel Inc. (NYSE MKT:APP) board to remove 5 of the original 7 directors, and joined the 4 directors nominated by them to exercise comprehensive control of the board of directors.

In the last three quarters, the net loss of American Apparel Inc. (NYSEMKT:APP) expanded to $19 million 200 thousand, or a loss of $0.11 per share, far exceeding the market forecast of $0.04, due to a substantial increase in related one-time expenses such as litigation and consultants ($5 million 300 thousand). The net loss and share loss were 150 thousand US dollars and 0.01 US dollars respectively during the same period last year.

Net sales fell 5.3% to $155 million 900 thousand, or less than the market forecast of $162 million 400 thousand, the highest since the fourth quarter of 2010.

Retail store sales fell 7% compared with the same period last year, while online sales shrank by 5%, while wholesale sales increased by two percentage points.

American Apparel Inc. (NYSE MKT:APP) closed at $0.58 on Tuesday, up 5.45%, after trading increased 20.69% to $0.70.

The stock has fallen to 43% so far in 2014.