Ousted American Apparel founder and CEO Dov Charney was officially fired from the company on Tuesday. The Los Angeles-based company said Charney was terminated “for cause in accordance with the terms of his employment agreement,” based on findings from an internal investigation into allegations of misconduct, Los Angeles Times reported.
American Apparel oversaw an internal investigation led by FTI Consulting into the allegations and “determined it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee of the company,” the company’s board wrote in a memo, which also named Paula Schneider as the company’s new CEO to replace interim CEO Scott Brubaker in January.
“We're pleased that what we set out to do last spring -- namely, to ensure that American Apparel had the right leadership -- has been accomplished,” Allan Mayer, co-chairman of the board, said in a statement. Schneider was a senior executive at several retail companies, including Warnaco and BCBG Max Azria.
Charney has served as a consultant for American Apparel, since being suspended as president and CEO on June 18 for allegedly misusing corporate funds and helping disseminate nude photos of a former employee. The former CEO has been wrapped in scandal and a string of sexual harassment lawsuits for years. Charney reportedly masturbated “eight or so times” in front of a female journalist who was doing a profile on him in 2004, according to the story. Former American Apparel employee Irene Morales sued Charney for $260 million in 2011, alleging she was forced to perform sexual acts over a period of several months, but the case was thrown out in 2012.
The situation reached a tipping point earlier this year when the board learned Charney knew of an employee’s plans to publish naked photos of Morales. Although Charney didn’t publish the photos himself, he didn’t try to stop the publication, the New York Times reported. Charney’s attorney has called the accusations “baseless,” according to the New York Post.