Thursday, September 18th16.4°C
19716
22754

American Apparel board votes to oust founder Dov Charney as chairman and CEO

LOS ANGELES, Calif. - The board of American Apparel has voted to oust its Montreal-born founder, Dov Charney, as chairman and notified him of its intent to remove him as president and chief executive.

The move means Charney has been suspended as president and CEO of the Los Angeles-based chain pending a contractually required 30-day period before he can be terminated.

The board's statement, issued Wednesday night, said that the proposed firing is for cause, and cited an "ongoing investigation into alleged misconduct," without giving details.

"We take no joy in this, but the board felt it was the right thing to do," said Allan Mayer, one of two board members appointed co-chairmen to replace Charney. "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."

Charney has been the subject of several lawsuits alleging inappropriate sexual conduct with female employees. He has acknowledged having sexual relationships with workers, but said they were consensual.

Executive vice-president and chief financial officer John Luttrell, has been named interim CEO. He has been with American Apparel since 2011 and previously worked for Old Navy and Wet Seal. The board says it is working with a search firm to find a permanent CEO.

The company, founded by Charney in 1998, manufactures clothes and sells them in its own 249 retail stores in 20 countries and has about 10,000 employees in 20 countries.

It planned to maintain Charney's commitment to sweatshop-free U.S.-based manufacturing, Luttrell

The Canadian Press


Read more Business News

22980


Recent Trending




Today's Market
S&P TSX15466.72+7.84
S&P CDNX964.36-8.15
DJIA17266.24109.39
Nasdaq4590.308+28.119
S&P 5002011.48+9.91
CDN Dollar0.9135+0.0057
Gold1226.60-9.30
Oil93.11-1.31
Lumber349.00+1.00
Natural Gas3.983-0.094

 
Okanagan Companies
Pacific Safety0.17+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.32+0.07
Cantex0.060.00
Anavex Life Sciences0.2261-0.01
Metalex Ventures0.060.00
Russel Metals37.01+0.64
Copper Mountain Mining2.72-0.01
Colorado Resources0.16-0.01
ReliaBrand Inc0.024-0.003
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.295+0.005

 



21097

FEATURED Property
2068330#107 1055 Glenwood Avenue
2 bedrooms 2 baths
$134,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...


Power-save your way to a down payment

Part 1 of 2 Photo: Thinkstock.com1. Move in with your parents or in-laws Explain that you're thinking strategically in moving back home. The quickest way to get into the housing market is to ma...


Price Guarantees

Article written by Linda Bustos Though I’d never recommend “lowest prices” as a unique selling proposition, I notice many retailers use a Price Match Guarantee or even a 110% Guara...

_








Member of BC Press Council


22267