American Apparel Officially Fires Founder Dov Charney After 6-Month Suspension

After removing CEO Dov Charney from his post back in June, American Apparel says it’s officially finished with the company founder. After investigating Charney for “alleged misconduct and violations of company policy,” the company said “it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee.”

American Apparel had allowed Charney to stay on in a consultant capacity after its board suspended him on June 18 as the company’s president and CEO, but it’s all over now, according to a press release from the company:

Mr. Charney was suspended as president and CEO by the Board on June 18 for alleged misconduct and violations of company policy. Under terms of an agreement signed by Mr. Charney on July 9, a special committee of the Board oversaw an internal investigation conducted by FTI Consulting into the allegations against Mr. Charney. Based on this investigation, the special committee determined that it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee of the Company. While under suspension as CEO, Mr. Charney had been serving as a consultant to the Company. This relationship has now been terminated.

Back in June when Charney was first ousted, the company clarified that he was fired for allowing employees to be publicly shamed and for just being a jerk in general. Soon after he got the boot, a video hit the Internet that purportedly shows Charney dancing around naked in front of employees.

He’s being replaced by Paula Schneider, who starts her CEO gig effective Jan. 5, 2015.

“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,” said Allan Mayer, Co-Chairman of the Board. “We are confident that Paula Schneider has the skills and background to lead the company to long-term success.”

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