American Apparel Fires Its Founder And CEO
International Business Times
Published Dec 16, 2014 06:56PM ET
American Apparel Fires Its Founder And CEO
By Morgan Winsor -
Ousted American Apparel founder and CEO Dov Charney was officially fired from the company on Tuesday. The Los Angeles-based company said Charney was terminated “for cause in accordance with the terms of his employment agreement,” based on findings from an internal investigation into allegations of misconduct, Los Angeles Times reported.
American Apparel oversaw an internal investigation led by FTI Consulting into the allegations and “determined it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee of the company,” the company’s board wrote in a memo, which also named Paula Schneider as the company’s new CEO to replace interim CEO Scott Brubaker in January.
“We're pleased that what we set out to do last spring – namely, to ensure that American Apparel had the right leadership – has been accomplished,” Allan Mayer, co-chairman of the board, said in a statement. Schneider was a senior executive at several retail companies, including Warnaco and BCBG Max Azria.
Charney has served as a consultant for American Apparel, since being suspended as president and CEO on June 18 for allegedly misusing corporate funds and helping disseminate nude photos of a former employee. The former CEO has been wrapped in scandal and a string of sexual harassment lawsuits for years. Charney reportedly masturbated “eight or so times” in front of a female journalist who was doing a profile on him in 2004, according to the story. Former American Apparel employee Irene Morales sued Charney for $260 million in 2011, alleging she was forced to perform sexual acts over a period of several months, but the case was thrown out in 2012.
The situation reached a tipping point earlier this year when the board learned Charney knew of an employee’s plans to publish naked photos of Morales. Although Charney didn’t publish the photos himself, he didn’t try to stop the publication, the New York Times reported. Charney’s attorney has called the accusations “baseless,” according to the New York Post.
Get The News You Want
Written By: International Business Times
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.