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American Apparel has gotten rid of their chief executive officer, Dov Charney, amid controversy and financial difficulties.
CBS News reported the clothing industry’s board of directors made the decision to fire Charney on Wednesday night in an unanimous decision. Dov Charney created the clothing brand while in college, but recently has been the center of controversy.
They reportedly said, “The decision to replace Charney grew out of an ongoing investigation into alleged misconduct.”
Many of his ad campaigns have contained provocative images and the company has been experiencing financial issues as well.
The New York Times reported Charney has faced sexual harassment claims in a number of cases. The financial losses the company sustained have included their shares decreasing to 84 percent in the last five years.
The company’s chief financial officer has been made interim chief executive as Charney has been suspended before he will face a formal termination after a period of thirty days. Two of the directors on the board, Allan Mayer and David Danziger, will take their place as co-chairmen.
Mayer made a statement saying, “We take no joy in this, but the board felt it was the right thing to do. 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.”
It was also reported that on Thursday after the news hit, shares for American Apparel had a 14% rise.