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Headlining today’s fashion news, the vertically-integrated, Los Angeles-based American Apparel brand and its Board of Directors have announced they will be terminating its Founder and CEO Dov Charney “for cause” effective immediately (after the necessary 30-day cure period concludes as dictated by his contract). This shouldn’t come as a surprise to those familiar with the clothier’s past, as Charney has been the subject of sexual harassment suits, physical abuse towards his managers, and even scrutiny from immigration officials over irregularities in his employees’ work documents. However, it was not clearly stated which of these actions may have led to his firing, though the recent drop in earnings may have been the final straw. Coincidentally, American Apparel’s stock has already surged upwards by more than 19% as reported early this morning.
While John Luttrell has been appointed as the company’s interim CEO, a source close to the recent firing told the Chicago Tribune that Charney has been “totally taken by surprise” with this news. “He’s going to fight like hell to get his company back, but he won’t succeed.” Be sure to stay tuned as this story continues to develop.