American Apparel Inc., which is renegotiating a vital loan agreement with Lion Capital and has warned it might not be able to continue as a going concern, tapped former Old Navy and Wet Seal executive John Luttrell as executive vice president and chief financial officer, effective Monday.
Adrian Kowalewski, who had been executive vice president and cfo, will remain on board as executive vice president of corporate strategy.
The company, led by chief executive officer Dov Charney, has had myriad financial problems and last year its auditor, Deloitte & Touche, resigned. The accounting firm had said that American Apparel did not maintain effective internal control over its financial reporting.
American Apparel has until Feb. 10 to renegotiate its loan agreement with Lion, which stipulates that the company needed to show annual earnings before interest, taxes, depreciation and amortization, EBITDA, of at least $20 million on Monday or risk default on its loan.
Luttrell, 56, was at the Gap Inc.’s Old Navy division from 2007 to 2008 and The Wet Seal Inc. from 2005 to 2007. He was executive vice president and cfo at both businesses. Most recently, he was a consultant at CFOs 2 Go Partners.
Luttrell will receive a minimum base salary of $400,000, restricted stock and option awards and other incentives.