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American Apparel Dismisses Creative Director Iris Alonzo

American Apparel Inc. severed ties with creative director Iris Alonzo, who was a longtime lieutenant of ousted founder Dov Charney.
American Apparel store | Source: Shutterstock
By
  • Bloomberg

NEW YORK, United States — American Apparel Inc. severed ties with creative director Iris Alonzo, who was a longtime lieutenant of ousted founder Dov Charney.

Keith Fink, a lawyer representing Alonzo, confirmed the firing in an interview and said she wasn’t given a reason for her dismissal. Liz Cohen, a spokeswoman for the Los Angeles- based company, declined to comment.

This is actually the second time the clothing manufacturer has parted ways with Alonzo. The company fired her in June when it suspended Charney as chief executive officer with plans to terminate him for misconduct. The company then hired her back a few months later, and she returned to leading the creative department. She stayed on even after Charney’s departure from the company was finalized in December.

American Apparel then named Paula Schneider, a fashion industry veteran, as permanent CEO, and she started about six weeks ago. In an interview earlier this month, she said the fact that she had won the approval of Charney for the job helped win over current executives, and keep them in place. She also praised the company’s brand and work ethic while pointing to the need for better logistics and planning.

“There’s a lot of opportunity, and it’s mostly in the fundamentals,” Schneider said at the time.

The company, which also runs a retail chain, has been financially troubled for years. It’s racked up more than $300 million in net losses since 2010 and needed to raise cash several times to quell liquidity concerns.

American Apparel rose 1.6 percent to 92 cents at the close in New York. The shares have gained 5.6 percent in the past month.

By: Matt Townsend; editors: Nick Turner, Dave McCombs and Suresh Seshadri.

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