Demand to Reinstate American Apparel CEO Dov Charney Denied
UPDATED: The board appointed Allan Mayer and David Danziger as co-chairmen to replace Charney, who also served as chairman, last week.
Demands for Dov Charney to be reinstated to his former CEO post have been denied.
A source tells Business Insider that Charney's lawyer unsuccessfully demanded a meeting on Monday with the board that ousted him. The company's controversial creator was bumped from his position on Wednesday. The board appointed Allan Mayer and David Danziger as co-chairmen to replace Charney, who also served as chairman. The move takes effect July 18.
Additionally, lawyer Patricia Glaser sent a letter to the board on Thursday noting that the company failed to give Charney 21 days' notice of his severance package as required by law, making his dismissal "not only unconscionable but illegal," and threatened action.
While the board didn't go into detail at the time of Charney's firing, BuzzFeed has since obtained a copy of his termination letter, which accuses him of sexually harassing employees and then "refused to participate in mandatory sexual harassment training"; giving "significant severance packages to former employees" to cover up any misbehaviors; and using "corporate assets in an inappropriate manner and for personal, non-business reasons," such as seeking company reimbursement for personal legal consultation. Read the full letter here.
The dismissal follows the company's downward spiral, as the L.A.-based brand is in debt for more than $250 million. Also possibly a contributing factor in his dismissal are the headlines Charney has generated for sexual harassment and racial discrimination lawsuits, employment of illegal immigrants, distasteful ads and controversial comments regarding body image in the media.