Paula Schneider, chief executive officer of American Apparel, has decided to relinquish her duties after a two-year successful service. She will be replaced by Chelsea Grayson who has been with the company through most of its difficult times including the time when the company filed for bankruptcy last year. Later, it emerged as a private company earlier this year. Most recently, Grayson served as American Apparel’s general counsel and chief administrative officer.

Sources close to the company said that Schneider voluntarily resigned from the company and was not pushed out. She is confident of Grayson as the new head of American Apparel which is still going through a rough patch. In her resignation letter, Schneider said that the turnaround plan for American Apparel was in place and that much of the heavy lifting and hard work had been done. Schneider’s move comes at a time when the company is up for sale. Schneider hinted that a potential sale of the company was another impetus for leaving.