American Apparel has been a brand long-steeped in controversy. It's been both criticized and acclaimed for its porny ads and its founder, president and CEO, Dov Charney, has been the subject of several high-profile sexual harassment lawsuits. Now, the board has voted to suspend and eventually terminate Charney for alleged misconduct.
Charney has been suspended from all duties immediately and was notified of the decision today. The company is terminating Charney with cause and while no details have been released, Charney's track record of employee abuse and alleged sexual misconduct is likely a major deciding factor in the termination. Lagging profits under his leadership as well as his statements that contradict the core values of the brand — made in the USA — are also likely factors.
Allan Mayer who is one of the board members replacing Charney as co-chairman of the board had this to say about the decision:
"We take no joy in this, but the Board felt it was the right thing to do, " Mr. Mayer said. "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 Board is working with a search firm to identify candidates for the job of permanent CEO and, based on our initial discussions with the search firm, we expect the list of possible successors will be impressive," said Mr. Danziger, who has chaired the Board's Audit Committee since 2011.
"We have one of the best known and most relevant brands in the world, with employees who are second to none; I believe we have a very exciting future," said Mr. Luttrell. "Our core business—designing, manufacturing, and selling American-made branded apparel—is strong and continues to demonstrate great potential for growth, both in the U.S. and abroad. This new chapter in the American Apparel story will be the most exciting one yet."
John Luttrell will be taking over as Interim Chief Executive Officer while a search is conducted.
As one Jezebel staffer pointed out, this has not been a great week for bespectacled alt fashion pervs.
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