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American Apparel appoints RadioShack CEO to board

Published on Jul 24, 2014 9:18 AM
An American Apparel store is seen in New York City on June 19, 2014. -- PHOTO: AFP

(Reuters) - American Apparel, a U.S. retailer dealing with high debt and management upheaval, said on Wednesday that the chief executive of another money-losing retailer would join its reshuffled board.

American Apparel appointed RadioShack Corp CEO Joseph Magnacca to its six-member board of directors, according to a company filing.

The retailer, which for years aired racy ads and battled sexual harassment lawsuits, also named a woman to its board, former Fisher Communications CEO Colleen Brown, and dropped its founder, Dov Charney, from the board.

American Apparel has more than US$250 million in debt although its market capitalization amounts only to US$200 million. RadioShack, which has reported losses for the past three years, faces a tough road ahead, too.

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