American Apparel released a statement Wednesday night reported Aol, which states founder Dov Charney has been removed as chairman. The American Apparel board also informed Charney of the clothing chain’s plans to oust him as CEO and president based upon several sexual harassment lawsuits.
According to Aol.com Dov Charney is suspended for 30 days as president and CEO of American Apparel before its founder is terminated. The 45-year-old Canadian businessman started the clothing company when he was only 20, in 1998, after “falling in love’ with the United States as a teen, which inspired the look and name of the brand. However, his alleged trysts with co-workers overpowered his passion for fashion. The board acknowledged the “ongoing investigation into the alleged sexual misconduct” as the cause of the pending termination in its statement.
Dov Charney, who was not available for comment, has claimed his sexual relationships with female workers of American Apparel were consensual. However, he has been the subject of at least five sexual harassment lawsuits since the mid-2000s, some have been settled, others dismissed, yet there are still pending lawsuits.
The American Apparel board has apparently had enough of the sexual misconduct allegations, despite the fact that Charney founded the brand, and in a difficult move has decided to save the clothing company’s name. Allan Mayer, one of the two co-chairmen, along with David Danzinger, that have been assigned in Charney’s place stated, “We take no joy in this, but the board felt it was the right thing to do.” He went on to declare that the brand has surpassed its founder, “Dov Charney created American Apparel, but the company has grown much larger than any one individual, and we are confidant that its greatest days are still ahead.” John Luttrell, American Apparel Executive Vice President and Chief Financial Officer has been named the interim CEO until a permanent replacement for Dov Charney is found.