Former CEO and founder of American Apparel, Dov Charney has officially been fired by the Board of Directors as of Tuesday, December 16, 2014. The board said he was terminated “for cause in accordance with the terms of his employment agreement.” Paula Schneider will take over as CEO in January 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,” American Apparel co-chairman Allan Mayer said in a statement.
The investigation has been completed, and the company “determined that it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee of the company.”
Sales dropped 5% to $155.9 million, down from $164.5 million a year before.
At its peak, shares were worth $15 a share. Most of this year, it’s been at $.50 a share. However according to our Youth Culture Studies, American Apparel as a brand remains a favorite among youth culture in North America.
It will be interesting to see what happens next to the brand that changed the tide for T-shirt and blank apparel trends over the past decade.