American Apparel Boots Founder, Gets Female CEO

Dov Charney loses consultant role
By Newser Editors and Wire Services
Posted Dec 17, 2014 12:52 AM CST
American Apparel Boots Founder, Gets Female CEO
People walk past an American Apparel store in Pittsburgh. The company has recorded annual losses since 2010.   (AP Photo/Keith Srakocic)

American Apparel has fired founder Dov Charney and named longtime fashion executive Paula Schneider to be its first female CEO. The company's board voted to oust Charney as CEO in June, citing allegations of misconduct. He was suspended but still served as a consultant to American Apparel. The company, which had been losing money since 2010, says it has now terminated his position "for cause" after an internal investigation. Charney has been the subject of lawsuits that allege he had inappropriate sexual conduct with female employees. He has said he had consensual sexual relationships with workers. Insiders say that after years of sexual harassment, nude photos were behind Charney's downfall this year. (More American Apparel stories.)

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