Clothing retailer American Apparel has officially fired its founder and CEO Dov Charney after suspending him over the summer during an internal investigation. The company named fashion executive Paula Schneider the new CEO.
Back in June, the company said that Charney is being investigated for “alleged misconduct.” Scott Brubaker stepped in as interim CEO.
Today, American Apparel confirmed that Charney was terminated “for cause in accordance with the terms of his employment agreement.” Scheider will replace him, while Brubaker will stay on to help with the transition.
“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,” Allan Mayer, Co-Chairman of the Board, said in a statement. “We are confident that Paula Schneider has the skills and background to lead the company to long-term success.”
According to the Los Angeles Times, Charney expressed disappointment in the decision and wished the company success.
“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 said.
Charney faced several lawsuits for his behavior over the years, but he remained the company’s public face. The company itself is also facing decreased sales, which dropped 5 percent this year from last year.