Dov Charney led American Apparel amid controversy

Dov Charney’s electric celebrity fueled his wardrobe company’s argumentative edge.

The former CEO of American Apparel has finished headlines both for his championing of U.S. production and support of newcomer workers. He’s also gained prominence for his company’s intensely passionate ads featuring immature women, for walking around his Los Angeles bureau in his underwear, and for several lawsuits alleging passionate harassment.

His house motionless they’d had enough. Charney, 45, was unanimously dismissed Wednesday night since of an “ongoing review into supposed misconduct,” according to a matter from a company. The organisation did not yield specifics.

“Boards will put adult with an huge volume of debate when there’s results,” says Ken Nisch, authority of JGA, a sell branding and pattern firm. “They tend to have a many reduce ardour when things are challenging.”

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American Apparel shares are down from an all-time high of about $27 in Jul of 2007 to about 68 cents Thursday. According to SEC filings, Charney owns 27% of a company’s batch and has a bottom income of $800,000 a year.

The company, founded on Charney’s adore for a plain T-shirt, hasn’t finished adequate to develop over basics, Nisch says.

“What they have is a sleepy concept,” he says. “I suppose (the house comes) to a conclusion, saying, ‘He’s not delivering a devise to pierce us forward, and we’ve got all these liabilities around us .. .so because are we putting adult with all these liabilities when we’re not observant a transparent trail to a subsequent chapter?’ “

Sexual nuisance controversy

Since holding on a roles of boss and CEO when a association went open in 2007, Charney has been a aim of mixed lawsuits alleging passionate harassment.

Former American Apparel worker Kimbra Lo filed a California Superior Court lawsuit accusing him of intimately assaulting her in 2010 during his home, during what she had believed would be a employing speak for a new pursuit as a association photographer.

Charney seemed in a pathway of a Los Angeles home “wearing usually a towel,” afterwards grabbed Lo “and vigourously kissed her,” a lawsuit charged.

When she protested and started to leave, Charney apologized and told her to stay, assuring her that “they would only speak about business.”

Instead, he led Lo into his bedroom and “forced her to perform several passionate acts,” apropos “more assertive and violent” when she finished any bid to resist, a lawsuit alleged.

After she managed to leave, Lo contacted her mom and told her of a supposed attack. According to a lawsuit, Lo’s mom phoned Charney and demanded that he never hit her daughter again.

“Charney begged redemption and certified he had ‘a problem,’ ” a lawsuit charged.

Three other American Apparel womanlike employees who are plaintiffs in a box alone supposed they were compulsory to pointer supposed settlement agreements when they were hired.

The agreements were designed to “keep employees from disclosing wrong conduct” by a association and a executives, as good as force a women “into an astray forum.”

Referring to that box and other settlement matters in new Securities and Exchange Commission filings, American Apparel pronounced dual had been settled, while another resulted in an “inconsequential amount” awarded to a plaintiff.

Is a simple T tired?

Born in Montreal, Charney attended a year of high propagandize in a U.S. during private boarding propagandize Choate, where he started dabbling in a wardrobe business. He shipped Hanes T-shirts behind to Montreal on a sight that upheld by Connecticut.

On his website,, that American Apparel links to underneath a territory patrician “Meet a founder,” Charney writes that entrance to Choate, “I reinforced my clarity that American propagandize T-shirts were iconic, singular and in many ways, improved than a T-shirts we had entrance to in Canada. It was my belief, during that really moment, that T-shirts were, though a doubt, an American birthright product.”

Charney went on to Tufts University. He never graduated, though a college outward Boston is where he started offered T-shirts from his dorm room underneath a name American Apparel. Charney changed a association to Los Angeles in 1997.

In an speak with American Public Media’s Marketplace earlier this year, Charney told horde Kai Ryssdal that his biggest debility is himself, saying, “I’m my possess misfortune enemy.”

He also concurred his knack for pulling boundaries, such as with his company’s argumentative billboards and advertisements of women wearing small wardrobe in intimately revealing poses.

In a extensive journal on his website, Charney writes about all from his childhood in Canada and adore for Montreal bagels to his preference to sell Butt magazine in American Apparel stores. Defending a preference in an e-mail to his mom, he said, “No question, that it is going to provoke people and it is my feeling that that is a inlet of provocative art. At times, to make progress, we finish adult offending people.”

While Charney has remained a blunt, unapologetic leader, his code has remained comparatively unchanged, struggling to say a cold factor. It continues to sell basis that don’t come cheap: T-shirts, sweatshirts, leggings and body-hugging spandex dresses in bold, plain colors.

American Apparel’s aim audience, a Millennial, “is decreasingly … somebody who wants to wear something that clearly came from a (certain) place,” Nisch says. “They’re going to have to rethink their tender of what this patron wants. It’s tough to be cold year after year after year.”

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