American Apparel founder and CEO Dov Charney, the t-shirt game Terry Richardson, is no stranger to controversy. He’s been the subject of numerous lawsuits and allegations over the years, ranging from sexual harassment to a variety of other flavors of woefully inappropriate workplace behavior. Charney has consistently maintained his innocence, often saying that such lawsuits were attempts to shake him down. In 2012 he said that one incident was “a testimony to my success…the fact that I’m a target for baseless lawsuits.”
That may be the case, but the company has finally started to see things the other way. They announced today their intentions to terminate him for cause. According to a statement from the company:
The Board of Directors of American Apparel, Inc. (NYSE MKT: APP) today voted to replace Dov Charney as Chairman and notified him of its intent to terminate his employment as President and CEO for cause. It is expected that the termination will be effective following a 30-day cure period required under the terms of Mr. Charney’s employment agreement.
The decision to replace Charney “grew out of an ongoing investigation into alleged misconduct,” although the nature of it has not been made clear.
“We take no joy in this, but the Board felt it was the right thing to do,” said Allan Mayer, who along with David Danziger, will now serve as Co-Chairman. “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.”