Hellos and Goodbyes
On Tuesday, American Apparel formally fired founder and CEO Dov Charney "for cause in accordance with the terms of his employment agreement" and hired Paula Schneider to replace him, effective Jan. 5. The controversial Charney was booted from American Apparel's board and placed on suspension in June while the company investigated alleged misconduct, including "financial improprieties" and allowing a blogger to use a nude photo of a former employee suing the company, the Los Angeles Times reports. The investigation, conducted by FTI Consulting, is complete.
Charney fought his ouster for months, and said Tuesday he is "disappointed with the circumstances." "I'm proud of what I created at American Apparel and am confident that, as its largest shareholder, I will have a strong relationship with the company in the years ahead," he added.
Schneider, 56, has spent decades in the fashion industry. Current interim CEO Scott Brubaker will stay on as a consultant.