American Apparel has issued a statement announcing that its Board of Directors voted to replace its founder and CEO, Dov Charney. His employment was terminated "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," said 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 45-year-old founded the company in 1997, but came under fire in 2011 when four female former employees filed a sexual harassment suit. At the time, the company defended Charney, claiming that the friends were all colluding to "shake down" the company for money. In 2012, Charney also faced a wrongful termination suit for the allegedly choking and rubbing dirt in the face of a former store manager in Malibu. He also supposedly called the employee "a wannabe Jew" and a "fag". The company denied all allegations.
A source close to the recent firing has spoken to the Chicago Tribune, saying that Charney has been "totally taken by surprise" by his termination. "He's going to fight like hell to get this company back, but he won't succeed."
During this period John Luttrell has been appointed as the company's interim CEO.