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American Apparel Director Resigns

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American Apparel director David Danziger has stepped down in the latest twist in a never-ending nightmare of trouble targeting the U.S.-made clothing company.

Danziger, who sat on the board since 2011 and served as co-chairman until December, resigned on Sunday and has been replaced in the interim by CEO Paula Schneider while the board searches for a new independent director before its annual shareholders’ meeting in 2016.

The latest boardroom shuffle comes after American Apparel last week reached an agreement with shareholder Jeffrey Kolb to avoid a proxy fight.

Kolb, who once worked for disgraced founder Dov Charney and owns 986 shares of American Apparel, said he intended to nominate the company’s former finance chief Adrian Kowalewski and Lucky Brand co-founder Gene Montesano to the board.

In a filing with the Securities and Exchange Commission, Kolb agreed to withdraw his nominations and American Apparel said it would form an advisory committee comprising industry executives, employees and others to offer Schneider insight, guidance and strategic input. In addition, the company agreed to look for an independent director experienced in the retail and apparel space.

A string of lawsuits have plagued American Apparel since it dismissed Charney for misconduct last December. Among other things, the exiled chief has sued the company and chair Colleen Brown for defamation and mental and emotional distress, which the retailer called a “scorched earth campaign” when it countersued Charney for violating his standstill agreement.

Earlier this month, a judge in the Delaware Court of Chancery granted the company’s request for a temporary restraining order that silences Charney’s criticism.

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