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Dov Charney Ousted as American Apparel CEO

American Apparel
American Apparel CEO Dov Charney was ousted by the company’s board on June 18. Charney created American Apparel, but the board was concerned about his alleged misconduct. (Thinkstock)

The Board of Directors of American Apparel, Inc. voted on June 18 to replace Dov Charney as chairman and notified him of its intent to terminate his employment as president and CEO for cause.

The board’s decision to replace Charney grew out of an ongoing investigation into alleged misconduct, said Allan Mayer, a member of American Apparel’s Board of Directors since the firm went public in 2007.

“We take no joy in this, but the board felt it was the right thing to do,” 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.”

It is expected that the termination will be effective following the 30-day period required under the terms of Charney’s employment agreement, the company announced.

Executive Vice President and Chief Financial Officer John Luttrell were appointed interim CEO and Mayer and David Danziger as the board’s co-chairmen.

“The board is working with a search firm to identify candidates for the job of permanent CEO,” said Danziger, who has chaired the board’s Audit Committee since 2011. “Based on our initial discussions with the search firm, we expect the list of possible successors will be impressive.”

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