The infamous CEO and Founder of fashion retailer American Apparel has been fired, for good.
Dov Charney, who bears a resemblance to the controversial fashion photographer Terry Richardson, has been ousted from his own company following a near six month internal inquiry carried out by FTI Consulting. In June this year, Charney was suspended as president and CEO preceding the investigation of suspected misconduct. He had been working as an interim, and rather ambiguously titled, ‘strategic consultant’ since, but was officially fired yesterday.
Complaints against the accused included the misuse of company funds, sexual harassment and condoning nude photos of a former employee to be posted on the internet. They aren’t the first allegations of their kind against the Canadian businessman, who founded American Apparel aged just 20 years old.
American Apparel said yesterday that “it would not be appropriate for Mr Charney to be reinstated as CEO or an officer or employee” based on the results of the investigation.
The teen brand has attracted a lot of attention, not least for its risqué advertising and Charney’s repeated lawsuits from at least nine female employees. The American retailer has also been making unwarranted losses in recent years, reporting a 7% decline in same-store sales last quarter.
Charney has quickly been replaced by Paula Schneider, who will take over as the company’s first female CEO from January 5, and was previously a senior exec for companies including Warnaco, Gores Group and BCBG Max Azria.
In a statement, the fashion veteran said that her vision is to “make American Apparel a better company, while staying true to its core values of quality and creativity and preserving its sweatshop-free, Made in USA manufacturing philosophy.”
Schneider is supposedly “very, very excited to be part of something that is such a big influence on pop culture and helps so many Americans.”
She referred to American Apparel as “the largest manufacturer of apparel in North America,” and added that “there are a lot of jobs and a lot of people, and we want to keep that going.”
Speaking of the decision, Charney said:
“Naturally, I am disappointed with the circumstances and my over 25 years of deep passion and commitment for American Apparel will always be the core DNA of the company.”
The 45 year old will remain the company’s largest shareholder, with his piece of the pie totalling 43%.