American Apparel board voted to oust founder Dov Charney as chairman

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American Apparel board voted to oust founder Dov Charney as chairman
Dov Charney, chairman and chief executive officer of American Apparel Inc., speaks during an interview outside a company retail store in New York, U.S., on Thursday, July 29, 2010. Starting the company in a dorm at Tufts University in Medford, Massachusetts, Charney built a worldwide empire of 280 clothing stores by leaping out ahead of mainstream fashion. He personified the racy, risk-taking aesthetics of his business and is now facing the consequences - skittish lenders and investors who doubt his ability to oversee his own creation. Photographer: Keith Bedford/Bloomberg via Getty Images
Dov Charney of American Apparel during 2005 LA Fashion Awards - Show at Orpheum Theatre in Los Angeles, California, United States. (Photo by Michael Tran/FilmMagic)
NEW YORK - MAY 21: American Apparel Founder Dov Charney poses for a photo on May 21, 2009 in New York City. (Photo by Johannes Kroemer/Getty Images)
Dov Charney, chairman and chief executive officer of American Apparel Inc., stands for a portrait in a company retail store in New York, U.S., on Thursday, July 29, 2010. Starting the company in a dorm at Tufts University in Medford, Massachusetts, Charney built a worldwide empire of 280 clothing stores by leaping out ahead of mainstream fashion. He personified the racy, risk-taking aesthetics of his business and is now facing the consequences - skittish lenders and investors who doubt his ability to oversee his own creation. Photographer: Keith Bedford/Bloomberg via Getty Images
Dov Charney, senior partner of American Apparel, announces he will shutter his garment manufacturing plant that employs some 1,500 workers, in observance of a scheduled Dec. 12 economic strike by Latinos, at a rally at Los Angeles' downtown Plaza Thursday evening, Dec. 11, 2003. Nativo Lopez, president of the Mexican American Political Association, listens at right. Several groups and individuals are protesting, among other things, the recent repeal of California Senate Bill 60, which had granted driver licenses to illegal immigrants. Organizers called on Hispanics in California to stay home from work, school and stores Friday. (AP Photo/Reed Saxon)
Mannequins sit on display at an American Apparel clothing store in New York, U.S., on Thursday, July 29, 2010. Dov Charney started American Apparel Inc. in a dorm at Tufts University in Medford, Massachusetts, and built a worldwide empire of 280 stores by leaping out ahead of mainstream fashion. He personified the racy, risk-taking aesthetics of his business and is now facing the consequences - skittish lenders and investors who doubt his ability to oversee his own creation. Photographer: Keith Bedford/Bloomberg via Getty Images
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LOS ANGELES (AP) - The board of American Apparel voted to oust founder Dov Charney as chairman and notified him of its intent to remove him as president and chief executive, the clothing chain said in a statement Wednesday night.

The move means Charney was suspended as president and CEO of the Los Angeles-based chain pending a contractually required 30-day period before he can be terminated.

American Apparel CEO Fired After Investigation

The board's statement said that the proposed firing is for cause, and cited an "ongoing investigation into alleged misconduct," without giving details.

"We take no joy in this, but the board felt it was the right thing to do," said Allan Mayer, one of two board members appointed co-chairmen to replace Charney. "Dov Charney created American Apparel, but the Company has grown much larger than any one individual and we are confident that its greatest days are still ahead."

Charney has been the subject of several lawsuits alleging inappropriate sexual conduct with female employees. He has acknowledged having sexual relationships with workers, but said they were consensual.

Charney could not immediately be reached for comment on Wednesday night.

Executive Vice President and Chief Financial Officer John Luttrell, has been named interim CEO. He has been with American Apparel since 2011 and previously worked for Old Navy and Wet Seal. The board says it is working with a search firm to find a permanent CEO.

The company, founded by Charney in 1998, manufactures clothes and sells them in its own 249 retail stores in 20 countries and has about 10,000 employees in 20 countries.

It planned to maintain Charney's commitment to sweatshop-free U.S.-based manufacturing, Luttrell said in a statement.

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