American Apparel Inc. said Monday it has entered an agreement
with shareholder Jeffrey Kolb, by which he will withdraw his
intended board nominees.
In turn, the retailer agreed to form an advisory committee that
will "provide insights, guidance and strategic input" for the
company's chief executive officer that will potentially be led by
one of Mr. Kolb's former nominees, according to the company's
filing with the Securities and Exchange Commission.
Last month Mr. Kolb, a former employee who owns a small
percentage of the retailer's shares, said he intended to nominate
two candidates as directors. American Apparel said Monday that Mr.
Kolb has agreed to withdraw the nominees. In exchange, the company
will form the committee to advise the company's chief executive and
"use reasonable efforts" to identify a new independent director to
fill a vacancy before its 2016 annual meeting.
Gene Montesano, a co-founder of Lucky Brand jeans and one of the
candidates proposed by Mr. Kolb, will head the new advisory
committee if he is willing and able to, according to the
filing.
Separately on Monday, the retailer said former Chief Executive
Dov Charney agreed to a temporary restraining order granted by a
Delaware court last week. The order prevents Mr. Charney from
trying to remove any of the fashion retailer's board members and
restrains him from making or prompting any statements that
disparage the company or its current, former or future employees,
according to the company.
Mr. Charney, who was terminated in December following
allegations of misconduct and of violating company policy, filed
action against American Apparel last week—the latest in a string of
lawsuits the former executive has filed against his former
employer. Mr. Charney is seeking advancement of fees and expenses
incurred in defending himself against American Apparel's
allegations.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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