Two directors at American Apparel have left the retailer’s board after clashing with controversial CEO Dov Charney during a liquidity crisis this spring, The Post has learned.
Separately, the racy clothing retailer is in talks with investors to inject an additional $8 million to $10 million into its cash-strapped operations within the next two weeks, sources said.
Mark Samson and Mark Thornton resigned over the weekend, having clung to their seats despite being prodded toward the exits by Charney during the past month, according to people close to the company.
The pressure reached a fever pitch late last week, when American Apparel made the odd public announcement that it had made two new board appointments, one of which was “effective upon future board vacancy.”
Thornton couldn’t be reached for comment. Reached by phone yesterday, Samson told The Post there was “nothing unusual” about the circumstances surrounding his departure, declining to comment further.
Sources said Samson, a corporate restructuring expert, and Thornton, a risk-management expert, had argued this spring that a Chapter 11 filing could be the best way to preserve the company’s assets as it faced a liquidity crisis.
“They were concerned about appearing astute, strict, protectors of the creditors,” according to one source close to the situation. “For them, Chapter 11 was the safe route — nobody could say they weren’t judicious.”
In late April, American Apparel was saved from the threat of bankruptcy by a team of Canadian investors, who pumped nearly $15 million in cash into the retailer’s operations in exchange for equity.
But now, Charney is scrambling for additional cash injections, as those funds have been nearly burned through.
The Canadian investors, led by frozen-foods tycoon Michael Serruya, are “asking some tough questions about the business after an initial honeymoon period” with Charney, according to one person close to the situation.
Nevertheless, another cash infusion of as much as $10 million “looks likely within the next two weeks,” according to a source.
The new financing is expected as business has heated up this summer, with US comparable sales up nearly 4 percent during the past month. In the New York area, American Apparel’s comp sales are up more than 8 percent during the past month, according to a source.
With sales on the upswing and cotton prices falling, the company is maintaining a goal this year to generate more than $20 million in Ebitda, or earnings before interest, taxes, depreciation and amortization, according to sources briefed on the company’s finances. james.covert@nypost.com