Here’s Why American Apparel Inc (APP) Stock Is Soaring Today


American Apparel Inc (APP) is removing CEO and founder Dov Charney and replacing him with Paula Schneider.

american-apparel-inc-appPaula Schneider will take over as American Apparel’s new CEO on Jan. 5. Schneider has been a manager at BCBG Max Azria and Laundry by Shelli Segal. She has also been acting as a consultant to the clothing retailer. With her move to CEO, Charney will no longer hold a role at the company, reports The New York Times.

Charney started American Apparel in 1998. He has been the subject of several controversies and was suspended from being CEO earlier this year. In an attempt to fight back against his suspension he became the largest shareholder in the company. He said he will still maintain a relationship with the company because of this, NYT notes.

Charney increased his stake in American Apparel to 43% in July following his suspension.

APP shares were up 18% as of Wednesday afternoon.

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