Former founder and chief executive of American Apparel, Dov Charney, is firing back against the company for his termination and won’t go down without a fight. Charney’s fate came to a halt last week after a thorough review of his behavior and flamboyant leadership by four board members in Manhattan. After long deliberation the board prepared for a long meeting to discuss the termination with Charney, which they feel has been long overdue.

Charney, known for uncouth behavior, is being held responsible for, as noted in the New York Times, “running a company steeped in lurid intrigue for years, promoting and fostering a hypersexual playground – for selling clothes and for what others claimed were illicit, sometimes illegal, pursuits.

The termination letter, which was hand delivered at a 10-hour board meeting, stated: “You have willfully and continuously failed to substantially perform your job duties…You have engaged in willful misconduct that has materially injured the financial condition and business reputation of the company.”

Many former employees have come forward claiming they experienced firsthand the lewd behavior of Charney leading to sexual harassment charges. One of the lawyers who represented several women who sued Charney for inappropriate behavior, Gloria Allred said, “It is surprising that Mr. Charney was not removed earlier. He was the architect of his own demise, by repeatedly disregarding societal norms and by engaging in conduct that many believed constituted allegations and potential liability. They have finally done what was inevitable.”

Furthermore, the board believes Charney’s alternative approach to business has negatively affected their balance sheets claiming Charney’s actions have made it difficult for the company to raise capital and secure debt financing at practical rates.


The board stands firm in their decision and remains positive they will prevail. Dov Charney: friend or foe? Who will come out victorious in this vicious battle?

News reference via ABC NEWS

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