American Apparel Dumps Controversial CEO

Controversial American Apparel CEO Dov Charney is getting the boot. After years of lawsuits and sexual harassment allegations, the Los Angeles Times reports that the company's board voted unanimously to terminate Charney yesterday, a decision that "grew out of an ongoing investigation into alleged misconduct" after "new information came to light." That alleged misconduct wasn't criminal but involved women and poor judgement, a source notes. As for Charney, "He was totally taken by surprise, which is part of the problem," the source says. "He's going to fight like hell to get this company back, but he won’t succeed."

Workers at American Apparel's LA factory seemed just as surprised to hear the news as Charney yesterday. "I just want to pass out—it's unbelievable," one told the LA Times. "He's the head honcho. He's a role model. I'm shocked." Another said Charney was spotted at the facility only the day before. Meanwhile, the company's chairman acknowledged "Dov Charney created American Apparel," and "this is not easy, but we felt the need to do what we did for the sake of the company." The brand has been wracked by a drop in sales, net losses, and debt over the last two years. CFO John Luttrell has been appointed as interim CEO, reports the Wall Street Journal. (More American Apparel stories.)