American Apparel founder suspended

American Apparel founder suspended

American company American Apparel has suspended CEO Dov Charney, also its founder and chairman, on the suspicion of sexual intimidation and harassment.

Resignation for Charney

The company's board aims to turn Charney's suspension into a contract termination in thirty days, as he faces several court cases according to the Financial Times. A former employee had already filed a complaint in 2006 and won, which resulted in plenty of other complaints from other former employees regarding Charney's behaviour.

 

He founded American Apparel's predecessor in 1989 and it currently has 2 stores in the Netherlands, both in Amsterdam. "We take no joy in this, but the Board felt it was the right thing to do. Dov Charney created American Apparel, but the Company has grown much larger than any one individual", the board explained its decision.

 

John Luttrell, the group's CFO, has been appointed as its temporary CEO while the company looks for a new CEO.

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