Matthew Scanlan, CEO of Something Navy, leaves the company

Matthew Scanlan, CEO of , is leaving the company, sources close to the company say, and the company is considering a sale.

Scanlan, who continues to be CEO and co-founder of Naadam, the cashmere brand, has could not be reached Friday for comment.

Something Navy investor Scanlan has been with the brand since 2019, and sources close to La company said it was determining the terms of his departure. Scanlan's affiliation with Something Navy is no longer listed on his LinkedIn page.

Sources said Something Navy was looking to sell a majority stake in the brand and had met with companies potential partners. The goal is to have a bigger company or licensing company run the business, while keeping Arielle Charnas, founder and creative director of Something Navy, involved in the creative and marketing part. p> Related Galleries

In 2019, Charnas raised $10 million from Silas Chou and other investors to launch a lifestyle brand led by Scanlan. Charnas holds a minority stake. Brand investors included Beliade Ventures, L Catterton, Vanterra Capital, Box Group, Jenny Fleiss, Silas Capital, Third Kind Venture Capital, SWAT Equity, Black Jays Ventures, and The Seed Lab, among others.

"The Seed Lab is an early-stage investor, having grown very attached to CEO Matt Scanlan and operational expertise," said Jesse Cole, Founding Partner, The Seed Lab. "What Matt built with Nadaam gave us reassurance with [him] managing day-to-day operations internally. There hasn't been an overload of transparency in the business over the past two years, so it's a big disappointment for us that Something Navy is parting ways with Matt. Hopefully the majority of the company being sold will clean up its operations and right a ship that has been misguided over the years. »

Neither Charnas nor Betty Wang, president of Something Navy, could be reached for comment Friday .

News of Scanlan's release was first reported in Business Insider on Thursday.

Sources close to the company say Scanlan is not the right business partner for Charnas and mismanaged the business. Charnas has reportedly spoken to a few potential replacements, but must have a new clothing or licensing group in place before proceeding with hiring.

Something Navy reportedly met Christopher Burch a few weeks ago, but we could not find out what who became of this meeting. Burch could not be reached Friday for comment.

Something Navy has fallen on hard times in recent years in light of the tough economy challenging many corporate ready-to-wear. Employees were laid off and Something Navy would operate with skeleton personnel. A source close to the company said the brand was going through a "pause and hiatus" and was not shipping new merchandise. The brand's website currently states: "Attention: We apologize for taking longer than usual order processing times."

Something Navy's store at 1055 Madison Avenue closed several months ago, while its store at 379 Bleecker Street is still open operating as the only Manhattan location. The Melrose Place store in Los Angeles is permanently closed, but the one in Newport Beach, California is still open, but has not received new merchandise since the start of the year.

Charnas, 36, who is also an influencer and has 1.3 million followers on her account Instagram personal, launched Something Navy as a style blog in 2009. She worked with Nordstrom on a Treasure & Bond x Something Navy collaboration in 2017 that sold over $1 million a day. The following year, Charnas and Nordstrom presented an exclusive...