LOS ANGELES, Oct. 9 (UPI) -- California clothes maker American Apparel Inc. has hired a former Blockbuster executive vice president and chief financial officer as its acting president.
American Apparel, struggling with debt and falling sales, is under investigation by the New York state attorney general for making an abrupt switch in accounting firms. Blockbuster, which executive Tom Casey left in August, filed for bankruptcy protection in September, The Los Angeles Times reported Saturday.
Howard Davidowitz, chairman of Davidowitz & Associates Inc., a retail consulting and investment firm, gave the appointment a vote of confidence. "The person they brought in has heavy experience dealing with the exact issues that American Apparel has. He's not an apparel expert, he's not this or that, but at least he does know restructuring.
"It gives them the opportunity to stay alive," he said.
American Apparel founder and Chief Executive Officer Dov Charney said, "I do think we want to widen the management team, and this is the first step in that direction."
"And it will free me up to focus on sales and the creative element of the company," Charney said.
