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American Apparel Ousts Charney, Theyskens Exits Theory, Tod’s Names Creative Director

Dov Charney, ousted CEO of American Apparel | Source: Reuters

Dov Charney, ousted CEO of American Apparel | Source: Reuters

Founder Dov Charney has been ousted at American Apparel Inc. amid allegations of misconduct. The company’s board said late Wednesday that it voted to replace Charney as chairman and will terminate him as president and chief officer, pending 30 days of the grace period stipulated in his employment agreement. Charney, 45, founded American Apparel as a wholesale t-shirt business in 1998. The brand’s USP is that all its clothes are manufactured in downtown Los Angeles in non-sweatshop facilities. Over the years Charney has been repeatedly targeted in sexual harassment lawsuits, stemming from the retailer’s racy advertising, often featuring young, half-naked models. Following Charney’s dismissal, Allan Mayer and David Danzinger have been appointed co-chairmen of the board, while executive vice president and chief financial officer John Luttrell has taken the reins as interim chief executive. The timing of Charney’s exit comes as the company is struggling with weak sales and heavy debt. In May the company reported a net loss of $5.5 million for the three months ended March 31.

Read The Full Story at Business Of Fashion

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