American Apparel share price set to rise as turnaround specialist is parachuted in to replace Dov Charney

 
Catherine Neilan
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American Apparel: Investors seemed to approve of interim chief executive by the looks of pre-market trading (Source: American Apparel)
American Apparel's share price was up in pre-market trading today, after the beleagured fashion retailer announced it had hired a turnaround specialist as its interim chief executive.
Scott Brubaker is taking over the reins from chief financial officer John Luttral, who had been covering the chief executive role following the departure of controversial founder and boss Dov Charney three months ago.
Charney had been ousted by the board in the summer after a series of misconduct allegations made by staff, as well as a period of poor performance.
Brubaker is currently managing director of management advisers Alvarez & Marsel, where his company biography notes he specialises in “business diagnostics, plan development and financial strategies for corporate turnarounds, acquisitions and restructurings”.
At the same time, Luttral is standing down and his finance role is being taken over by Hassan Natha, Fisher Communication's former chief financial officer.
“We are confident that their experience and leadership will help the company achieve its goals,” Allan Mayer, co-chairman of the board, said in the statement.
Shares were up more than five per cent ahead of the US markets' opening today on the back of the news. However this will do little to head off the losses sustained this year so far, as you can see from the chart below.

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