Paula Schneider will take up the role on 5 January

Paula Schneider will take up the role on 5 January

US retailer American Apparel has appointed industry veteran Paula Schneider as chief executive, to replace ousted Dov Charney.

Schneider will take up the role on 5 January. The appointment follows the termination of Charney who was fired over allegations of sexual misconduct in June.

Scott Brubaker, who has been serving as interim CEO, will continue in the post until Schneider joins the company, after which he will remain as a consultant.

Schneider has a well-earned reputation for improving the financial performance and operational efficiencies of numerous global fashion brands. She has served as president or senior officer of a number of retail and apparel companies, including Warnaco, Gores Group, BCBG Max Azria, and Laundry by Shelli Segal.

David Danziger, co-chairman of the board, said: "This company needs a permanent CEO who can bring stability and strong leadership in this time of transition, and we believe Ms. Schneider fits the bill perfectly. We remain grateful to Scott Brubaker for his hard work and invaluable insights towards improving our operations."

The announcement sent American Apparel shares up 8.6% in after-hours trading.

While under suspension as CEO, Charney had been serving as a consultant to the company. This relationship has now been terminated.

Allan Mayer, co-chairman of the board. Added: "We're pleased that what we set out to do last spring - namely, to ensure that American Apparel had the right leadership - has been accomplished. We are confident that Paula Schneider has the skills and background to lead the company to long-term success."