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Clothing retailer American Apparel, widely known for its racy advertising, has ousted its controversial CEO, Dov Charney, for alleged misconduct. The company’s Board of Directors said Wednesday that John Luttrell will take over as interim chief executive.
The Board made the move as Charney is under an “ongoing investigation into alleged misconduct,” the company said. While the company said nothing specific about the investigation, Charney has been dogged for years by controversy, including secual misconduct. The company was even sued by Woody Allen during his tenure.
As The New York Times points out, the company has also been in a financial free-fall, with shares dropping 84 percent over the last five years.
"We take no joy in this, but the Board felt it was the right thing to do," Allan Mayer, who is taking over as co-chairman with David Danziger, said in a statement. "Dov Charney created American Apparel, but the Company has grown much larger than any one individual and we are confident that its greatest days are still ahead."
Luttrell was the company’s CFO previously. Mayer and Danziger are company directors.
Charney will officially be suspended for 30 days and after that, will formally be terminated.