American Apparel Inc. will pay Alvarez & Marsal from $125,000 to $250,000 a month for its services to the retailer, including those of A&M’s Scott Brubaker as interim chief executive officer.
Brubaker was named interim ceo of American Apparel on Monday. Chief financial officer John Luttrell, who had served as interim ceo since the June suspension of founder Dov Charney, has left the company.
The vertical retailer’s arrangement with A&M can be terminated by the retailer or the turnaround firm at any time, according to a Thursday filing with the Securities and Exchange Commission. The filing noted that Brubaker, who has been with A&M’s North American unit for 11 years, had worked with the retailer on a consulting basis for a month prior to his appointment as interim ceo and that other “finance and accounting” personnel were included in the monthly fee to be charged by A&M.
Brubaker, a certified turnaround professional, has had assignments including Eddie Bauer and Spiegel Inc. during his tenure with Alvarez & Marsal.
The filing also said that Hassan Natha, named to succeed Luttrell as executive vice president and cfo, will serve in that capacity for an initial term of one year with automatic one-year extensions, unless terminated by the company at least 90 days prior to the expiration of each term. He will receive a base salary of $400,000 a year, with an annual incentive compensation target of $200,000 a year. Natha will be eligible for a $50,000 bonus for the current fiscal year, which coincides with the calendar year, and will receive a $5,000-a-month relocation stipend.
Natha has served as cfo of Fisher Communications Inc. and Jones Soda Co. and, earlier, spent 10 years in finance posts with Nike Inc.’s Bauer Nike Hockey unit.
A special committee of the board is investigating alleged improprieties by Charney while he works as a consultant to the company. Standard General, which effectively has a 43 percent stake in the company, now directs the shares previously controlled by Charney.
In other appointments earlier this week, American Apparel named Patricia Honda president of wholesale and Nicolle Gabbay president of retail.