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Current Events PopWrapped | Current Events

Dov Charney Loses His Hold On American Apparel, Board Releases Official Statement

PopWrapped | PopWrapped Author

PopWrapped

06/20/2014 4:44 am
PopWrapped | Current Events
Dov Charney Loses His Hold On American Apparel, Board Releases Official Statement
Media Courtesy of LA Times

Roxanne Powell

Senior Content Editor

@roxipowell

Every company has a founder and board behind the scenes. They pull the strings, track the projected sales, and command their leagues of employees to make sure their customers have the best shopping experience possible. Earlier this week, the board for American Apparel decided to oust the company's "controversial founder" Dov Charney. According to the board, Charney will lose both his position as company chairman and chief executive due to "alleged misconduct." He will be replaced by two other directors, while the rest of the board begins the hunt for a new and improved CEO for the company. In the meantime, John Lettrell will step in on a temporary basis. Lettrell currently serves as the company's chief financial officer. The board chose to replace Charney after the "ongoing investigation into alleged misconduct" escalated. Allan Mayer, a current director and future co-chairman of the company, elaborated: “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.” External sources, including Sitrick & Co., have refused to comment on the truth behind the misconduct and the investigation therein. In an attempt to get all of the facts, BuzzFeed called Charney's personal number. He hung up after a quick "Hello?" He has since disconnected his voicemail box. Charney did give an official interview back in February, however.

“I don’t have people bursting in my house yet telling me to take a hike,” Charney confessed when asked about a possible change in company ownership. “Who else is in the founder-led companies that are big out there? Everybody’s a 5 or a 6 or approaching a 7. I’m in my mid-forties so I’m building a team and I’m widening it, but I’m just cracking my knuckles and getting started. When I’m in my mid-fifties, I’m going to start looking at how to widen, you know, start passing on the torch completely. But right now, I’m just figuring where I want to drive the bus.”

In an attempt to stay afloat, American Apparel has sold some of its own stock. Even so, their creditors are circling ever closer, and they will soon go into "discussion with its lenders for a waiver on the [company's] default."

What do you guys think about the case? What are your thoughts about Dov Charney? Let us know in the comments below!

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