American Apparel founder Dov Charney was ousted by the company's board on Wednesday.
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The board appointed Allan Mayer and David Danziger as co-chairmen to replace Charney, who also served as chairman.
“We take no joy in this, but the board felt it was the right thing to do,” Allan Mayer said in a statement. “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.”
Charney, a Montreal native, has been plagued by accusations of sexual harassment. In 2011, four women who once worked for the company filed sexual harassment suits, and in 2012 Charney allegedly choked and rubbed dirt in the face of a former Malibu store manager. The manager brought a wrongful termination suit.
Charney began making T-shirts under his line in 1991, and moved his business to Los Angeles in 1997. Charney's suspension from company activities begins immediately, but a 30-day period is required before his termination can take effect.