Allan Mayer, head of 42West's strategic communications unit, was named co-chair of American Apparel following the board’s June 18 decision to terminate "with cause" controversial founder/chief Dov Charney.
| Mayer, Charney
Prior to 42West, Mayer served nine-years as entertainment practice head at crisis firm Sitrick and Company, where he advised Motion Picture Assn. of America, Los Angeles Dodgers, Rush Limbaugh, MTV, Recording Industry Assn. of America, Sony, Eminem and Steven Spielberg.
With Mike Sitrick, Mayer wrote "Spin: How To Turn The Power of the Press to Your Advantage."
Since 2007, Mayer has been an independent board member of American Apparel, which has "an outgoing investigation into alleged misconduct" of Charney. Said Mayer: "We take no joy in this, but the Board felt it was the right thing to do. Dov Charney created American Apparel, but the Company has grown much larger than any one individual and we are confident that its greatest days are still ahead."
The board suspended Charney and intends to fire him after 30 days, in compliance with his contract.
CFO James Luttrell has been upped to interim CEO and David Danziger, an account at MSCM LLP, is now chair.
American Apparel, which is based in downtown Los Angeles and noted for its sweatshop-free "made-in-US" policy, reported a one percent dip in first-quarter revenues to $137M. It shaved its net loss from $45.5M to $5.5M.
Sitrick (Mike Sitrick and Terry Fahn) reps American Apparel.