LOS ANGELES — American Apparel appears to be headed for a proxy battle as the company seeks to ward off attempts by a shareholder angling to secure two seats on its board of directors.
The firm’s board is asking shareholders to vote against two board nominees proposed by Jeffrey Kolb, according to a preliminary proxy statement filed with the Securities & Exchange Commission Friday.
Kolb has nominated Adrian Kowalewski, former American Apparel chief financial officer and director, and Gene Montesano, who had been earlier considered for the board.
The American Apparel board said in its SEC filing it’s backing the election of Laura Lee, Thomas Sullivan and Lyndon Lea at its annual meeting scheduled for July 16.
Kolb, who owns 986 shares of company stock, is himself a former American Apparel employee who worked there during the tenure of former chief executive officer and founder Dov Charney.
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Charney was officially fired from American Apparel late last year following a June suspension and since then he — along with supporters — has been vocal about demanding his reinstatement at the company. His firing and the events leading up to his dismissal have set off a firestorm of litigation involving former employees, the company, hedge fund Standard General and Charney himself.
American Apparel this month filed a motion in the Delaware Court of Chancery seeking a temporary restraining order against Charney. The court is expected to hear arguments on the motion Monday.
It’s against this backdrop that the apparel manufacturer and retailer aims for a turnaround of the business under ceo Paula Schneider.
American Apparel shares closed up about 5 percent on Friday to a market value of $102.3 million.