General Counsel, In-House Counsel

What Being A Lawyer Means To Chelsea A. Grayson, General Counsel & Chief Administrative Officer Of American Apparel

American Apparel's General Counsel shares her insights from being a top in-house attorney and provides advice for ATL’s law school audience.

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Chelsea A. Grayson

Chelsea A. Grayson

“I been through that, been shot at, shoot back / Gotta keep a peace like a Buddhist.”– Jay-Z

This week, I had the opportunity to catch up with Chelsea A. Grayson, General Counsel & Chief Administrative Officer of American Apparel. You may be familiar with American Apparel from a local storefront or you may have heard of American Apparel’s recent emergence from bankruptcy. After a win in U.S. Bankruptcy Court last week, during which a judge ruled in favor of the retailer’s reorganization plan, the company hopes to remind consumers what makes American Apparel unique: Its dedication to U.S. manufacturing.

Needless to say, Grayson has been quite busy in her dual roles at American Apparel. Fortunately, she has taken some time available to share her insights from being a GC and provide advice for ATL’s law school audience. Here are some key excerpts from our conversation:

Renwei Chung (RC): What does being a lawyer mean to you?

Chelsea A. Grayson (CG): It depends on the situation. In my day-to-day life here at American Apparel, lawyering means facilitating our operations while minimizing risk. This is the work of clearing the way for the business folks, rather than shutting them down with a “no.” If I can gain their trust, I can ensure that my legal department is always a gateway for them, rather than something they seek to circumvent. In the litigation context here at American Apparel, being a lawyer means being bold and creative. By shifting paradigms, I have been able to achieve quick, decisive wins while facing an avalanche of very unique cases.

RC: What attracted you to law and how did you choose Loyola Law School?

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CG: I was attracted to the law because I love the art of advocacy — the art of diligently gaining a 360 degree understanding of an issue. My grandfather told me when I was about 3 years old that I would be a Philadelphia lawyer; that had a huge impact. He always said that if he had been able to afford to go to college, he would have become a labor lawyer (he did get his shot at advocacy when he became the first president of the Local 770 union). I chose Loyola Law School because of their strong career services department, their handpicked stellar line-up of professors, and the practicality of their upper-level courses and programs (which are designed to prepare students for the actual practice of law).

RC: I noticed you clerked for Judge Samuel Bufford of the U.S. Bankruptcy Court and became a partner at Jones Day before becoming General Counsel of American Apparel. I’d love to hear a little more about your career and learning experiences along the way.

CG: Clerking for Judge Bufford was fortuitous in a way I could have never predicted. He was a thoughtful and academically rigorous judge; during my year with him, we had several prominent Chapter 11 cases come through his courtroom (relatively rare for Bankruptcy Court in Los Angeles), he sat on a Bankruptcy Appellate Panel and we wrote a published decision together. Until my clerkship, I had assumed I would be a litigator; but during my clerkship, I came to appreciate the negotiations and finessed drafting involved in transactional law (bankruptcy law is a bit of a deal/litigation hybrid practice).

Subsequently, when I returned to Jones Day (I had summered there previously), I joined the corporate group, and, not long thereafter, we went through the post-9/11 “mini-recession.” I was one of the few corporate associates to remain busy throughout that downturn because I was able to leverage my bankruptcy experience to work on distressed mergers & acquisitions. When healthy M&A work returned, I was way ahead of most of my peers, having continued to gain experience and close deals throughout the down years. Ultimately, I made my way up the ranks at Jones Day and eventually made partner in the M&A group.

Obviously, my work with distressed companies and my bankruptcy experience prepared me beautifully for being the General Counsel of American Apparel — it was as if my whole career had been leading me to this position. And, even though I am a deal lawyer at heart, I have discovered that I thrive in litigation (and we had a lot of it this year) — I’m a fairly cool customer and I know how to take my ego off the table.

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RC: What advice do you have for those who are about to embark on the law school journey and/or for those who are about to graduate law school?

CG: The law is all-consuming. You will never think the same way again, and you will never have a moment where some part of your brain isn’t thinking about work. So, you better love the job you choose. This isn’t a profession where you can simply tolerate your job, or where you can dial it in for the paycheck. Lawyers get paid to think — we have to be fully engaged the whole time. But, if you get it right with your career path, you will be incredibly fulfilled. I am.

RC: Outside of law, what are you passionate about?

CG: My kids. I am a single mother (I have a 14-year-old daughter and a 12-year-old son). When I am not lawyering, I am mothering. And, we love to travel — they’ve already been to Italy, France, Belgium, Greece, and Switzerland with me, and I have been all through Asia (including India).

RC: How can young lawyers and millennials help shape our profession?

CG: Young lawyers have a huge responsibility and opportunity to evolve the business of law firms as they succeed to leadership positions at those firms. Whether in the context of alternative billing arrangements, the commoditization of certain types of work, the training of young lawyers during a time when junior-level work is growing scarce and clients are loathe to pay for it — I think most would agree the law firm model needs to develop in order to stay relevant and successful.

RC: What does diversity mean to you?

CG: There is deep value in the myriad perspectives that are gained when you bring a diverse group of people to the table. Diversity is key to avoiding groupthink, which is death to innovation and progress. And diversity must occur at all points, including the top, leadership levels. We need to make a concerted effort to allow this to happen. This is not difficult: smart, skilled, diverse candidates are out there; open your eyes, seek them out, hire them, and promote them.

RC: It was great chatting with you, is there anything else you would like to share with our audience?

CG: I have been in-house for over a year now, and I have encountered just about every legal issue a General Counsel might experience in an entire career. The law firms that I have held onto throughout that process — the ones that have gained my loyalty (Jones Day being at the top of my list) — are the ones that partnered with me, that took the time to know my business, that sat down with me and crafted tailored solutions, that were willing to be bold with me. It is that sort of high-level customer service that causes a General Counsel to invite a law firm into the boardroom and into the c-suite (really, the places all law firms should strive to be).

On behalf of everyone here at Above the Law, I would like to thank Chelsea A. Grayson for sharing her experience and wisdom with our audience and wish her continued success in her career.

Renwei Chung is the Diversity Columnist at Above the Law. You can contact Renwei by email at projectrenwei@gmail.com, follow him on Twitter (@renweichung), or connect with him on LinkedIn.

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