American Apparel founder and CEO Dov Charney is apparently jobless after the company's board voted to fire him as CEO in June. The board cited misconduct allegations as the reason for the company's decision to fire him. Though Charney was suspended last summer, he still served as the company's consultant.
Since Dov Charney has been fired, American Apparel announced its next CEO to be Paula Schneider, a longtime fashion senior executive of several retail companies such as Warnaco, BCBG Max Azria and Laundry by Shelli Segal. As reported by CNN Money, Schneider will take the company's headship on Jan. 5, 2015.
"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," American Apparel's co-chairman of the board Allan Mayer said.
In an interview, Paula Schneider expressed her sentiments on becoming the company's CEO and said that she is excited to be part of American Apparel.
"I'm very, very excited to be part of something that is such a big influence on pop culture and helps so many Americans," Schneider stated. "[American Apparel] is the largest manufacturer of apparel in North America. There are a lot of jobs and a lot of people, and we want to keep that going."
In 1998, American Apparel was founded by Montreal-born Dov Charney. The company produces apparels and sells them in 245 of its own retail stores in 20 nations and approximately has 10,000 employees. According to The Daily Mail, the company is well-known for selling American-made merchandises and for its provocative merchandising strategies.
However, Charney's era of being American Apparel's CEO has finally ended. He was fired for alleged misconduct and is currently facing several harassment lawsuits filed by employees. He was reportedly conducting interviews and company meetings in his underwear. He was also accused of having inappropriate sexual conduct with female employees.
On Tuesday, American Apparel announced the internal investigation into Dov Charney had been completed, Los Angeles Times reported. Based on the findings of FTI Consulting, the company said it determined that it would not be apt for Mr. Charney to be reinstated as CEO or an officer or employee of the company.
The ousting seemed to end a chapter in the controversial tale of American Apparel's founder Dov Charney. Despite being stormed by sexual harassment lawsuits and misconduct accusations, he was considered a pioneering and committed public image of the company.
"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," Charney said. "My over 25 years of deep passion and commitment for American Apparel will always be the core DNA of the company."
As American Apparel prepares for its new leadership, Dov Charney issued a statement that he was disappointed but wished the company "continued success."
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