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American Apparel board voted to oust founder Dov Charney as chairman



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.

Join the discussion

1000|Char. 1000  Char.
jgesselberty June 19 2014 at 6:46 AM

Hey, I have an idea. Let's have the patent office revoke their name, like they did to the Redskins, since it is likely that nothing they sell is actually American.

Flag Reply +47 rate up
17 replies
kittenblu June 19 2014 at 8:30 AM

Such B.S..... Im sure... What woman isnt offended by a rich , good looking mans sexual advances.?!! I dont buy for a minute that most of these women werent making their own sexual advances. I am a woman and damn well know we arent as pure as the driven snow.. Most of these ladies saw dollar signs and ran with it. end of story.

Flag Reply +37 rate up
23 replies
norbacuna June 19 2014 at 7:40 AM

Employees especially woman, in many cases, like to get in the sack with their bosses as an adrenalin trip, I do have my own personal experiences, I'm happy to say, I had never nor the Co. I worked for been sued, but I recognize the fact, that we are responsible for our own acts and if we fall for it, there is no one else to blame, but our selves.

Flag Reply +20 rate up
4 replies
onewally June 19 2014 at 8:41 AM

What a greasy, sleazy looking dude.

Flag Reply +19 rate up
1 reply
papabob666 onewally June 19 2014 at 1:11 PM

onewally: at 81 I'm not the stud I used to think I was, but I'd sure trade places with him. AND SO WOULD YOU, jerk!

Flag Reply +2 rate up
Beth June 19 2014 at 6:42 AM

Well, I guess if you were having sexuall relationships with consenual male employees you you could fight your case saying you were being picked on for being gay. Guess no fight for being hetero

Flag Reply +16 rate up
3 replies
fifa_sucks2 June 19 2014 at 8:18 AM

Just watch. He will get millions to leave

Flag Reply +13 rate up
8 replies
wild64u June 19 2014 at 8:56 AM

Wow, after all these years they get rid of him? This board is a joke as are most. A bunch of good old boys who vote each other huge raises by sitting on each others boards and contribute little. We need a law that allows people to hold board members personaly responsible for their decisions or ineptitude.

Flag Reply +11 rate up
1 reply
idodeco2 wild64u June 19 2014 at 10:12 AM

That's what happens when an entrepreneur of a successful business decides to take his company public and sell shares on the stock market! I hope he's rich enough to be happy for the rest of his life and the CEO's aren't getting it all.

Flag Reply +3 rate up
loustamm June 19 2014 at 8:08 AM

American Apparel is made in East LA but most of their fabrics come from Asia. Mr. Charney exploits are well know in NYC and LA, it is about time someone reeled him in. Bing or Google his name and read for your self.

Flag Reply +8 rate up
4 replies
micknc2 June 19 2014 at 11:04 AM

So if Dov Charney is being deemed a sleeze bag sexual deviate, what are the women who willingly jumped in the sack with him? Are these the same breed of women who as teachers seek pleasure from their 14 yr old male students?

Flag Reply +6 rate up
4 replies
Cathy June 19 2014 at 8:58 AM

Moral to this story. When you take risks and break your back to build a company, make sure you always maintain 51% of the voting stock.

Let me guess, the women complained because they expected big promotions and raises for the sex and didn't get it, so now it's harassment.

Flag Reply +6 rate up
1 reply
subsara26 Cathy June 19 2014 at 9:20 AM

Don't quit your day job

Flag Reply +4 rate up
1 reply
slackwarerobert subsara26 June 19 2014 at 12:34 PM

I would. Working nights pays more. Guess YOU can't count. 51% votes I keep my job, guess what board gets to loose theirs.

Flag 0 rate up
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