American Apparel director David Danziger resigns

American Apparel director David Danziger, who had served as co-chairman until December, resigned from the board at the weekend, part of a shake-up that followed a settlement with shareholder Jeffrey Kolb.

The move clears the way for chief executive officer Paula Schneider to take his spot, the Los Angeles-based retail chain said in a regulatory filing.

The company also will seek another independent director as part of an agreement last week with Mr Kolb, who had threatened to start a proxy battle for board seats.

The Kolb tussle was part of a broader fight with American Apparel founder and ex-CEO Dov Charney, who has been trying to reassert control at the company since his ouster last year.

Mr Kolb previously worked for Mr Charney and was seen as his ally in a potential proxy contest. American Apparel is engaged in a separate legal showdown with Mr Charney over his firing.

The company has accused him of launching a “scorched earth campaign” to retake control of the retailer, in violation of an agreement covering his departure.

Earlier this month, a judge ordered Mr Charney to muzzle his criticism of American Apparel. Mr Danziger had served as co-chairman alongside Allan Mayer until about six months ago, when they ceded the role to Colleen Brown.

- Bloomberg