American Apparel fires its CEO and Founder Dov Charney

American Apparel fires its CEO and Founder Dov Charney

American allegations

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The US-based retail giant has issued a statement announcing that its Board of Directors voted to replace its founder and CEO, Dov Charney

Charney – who founded the clothing company in 1997 – has recently been terminated from his post at American Apparel 'for cause' and follows from an ongoing investigation into allegations of misconduct. 

"We take no joy in this, but the Board felt it was the right thing to do," stated board member Allan Mayer. "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."

The founder came under fire in 2011 when four female former employees filed a harassment suit against him. At the time, the company defended Charney, claiming that the women were all determind to "shake down" the company for money. In 2012, Charney also faced a wrongful termination suit for allegedly bieng abusive and rubbing dirt in the face of a former store manager in Malibu – with the company denying all allegations. 

Now, a source close to the recent dismissal has spoken to the Chicago Tribune, saying that Charney has been " totally taken by surprise" by the decision – in which during this period John Luttrell has been appointed as the company's new CEO. 

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