Los Angeles-based American Apparel announced Friday that acting president Tom Casey has resigned, just over a year after joining the company.
Casey joined American Apparel in early October 2010, as the company was renegotiating a credit agreement with investor Lion Capital. His primary responsibilities were to restructure the company’s operating strategies and capital structure, and Casey is credited with helping the company to secure a $14.9 million investment from a group of Canadian investors in April 2011.
“In the past 12 months, we have executed on our strategic plan, improved sales and financial performance and enhanced our financial flexibility,” said Dov Charney, chairman, CEO and founder of American Apparel. “I appreciate Tom’s substantial contributions to our success and his help in shaping the company’s future.”
Casey came to American Apparel following a three year stint as executive vice president and chief financial officer of Blockbuster Inc., and has over 25 years’ experience in management positions with company’s such as Deutsche Bank Securities Inc., Citigroup and Merrill Lynch. American Apparel did not disclose the reason for Casey’s resignation, and announced in a separate filing that he would continue to receive salary and insurance benefits for 12 months following his departure.
“It has been a pleasure working with Dov and his team,” Casey said. “Dov is a rare talent in apparel retail and his hands on drive and energy are inspiring. Dov has created one of the most innovative companies in apparel retailing with a unique business model, loyal customer base and commitment to American manufacturing.”
Friday’s announcement marks the second executive resignation in less than a month. On October 28, apparel industry veteran Marty Staff stepped down as chief business development officer after holding the position for seven months. “I have enjoyed my time at American Apparel and believe my contributions are part of the reason we are currently seeing growth in all segments of our business,” Staff said in a statement.
During the tenure of both Casey and Staff, American Apparel launched new denim and beauty product lines; created new revenue streams through a partnership with eBay; received increased funding through stock shares; and saw a 10 percent rise in wholesale sales in September.
At this time the company has not named an immediate successor to Casey.
For more information, visit American Apparel’s website.
