New York (HedgeCo.Net) – American Apparel, under the corporate control of New York-based hedge fund Standard General, terminated close to 200 workers beginning on April 1, 2015.
According to human rights organization Hermandad Mexicana, the firings came only one day after paying four executive officers hundreds of thousands of dollars in shares and stock options.
A lot of the workers who were fired on April Fools Day were organizers and leaders in the fight for better conditions and wages.
“It’s an embarrassing day for American Apparel, under new ownership and management since the ouster of iconic founder and former CEO Dov Charney, with the firing of 200 production workers,” declared Nativo Lopez, senior adviser to Hermandad Mexicana. “I strongly suspect that the terminations were retaliatory towards those workers who were actively involved in the organizing efforts.”
Lopez reported that a day after the terminations he shared the U.S. Security Exchange Commission report with the workers documenting the distribution of shares and stock options to American Apparel’s management.
Paula Schneider, CEO, was issued 300,000 shares valued at $210,000 and 350,000 stock options valued at $140,000 for a total of $350,000; Hassan N. Natha, CFO, was issued 200,000 shares and 150,000 stock options, for a total equal to $200,000; Chelsea A. Grayson, General Counsel, was issued 200,000 shares and 150,000 stock options for a total of $200,000; and Martin E. Bailey, Chief Manufacturing Officer, was issued 82,750 shares and 82,750 stock options for a total of $91,025.
“It is the height of hypocrisy that Standard General’s management complains of financial challenges confronting the company, lays the blame on the former CEO, takes it out on the workers, and then pay themselves hefty annual bonuses,” concluded Lopez.
Alex Akesson
For HedgeCo.net
alex@hedgeco.net
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