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American Apparel Fires Charney, Names New CEO

December 17, 2014

American Apparel, Los Angeles, has fired founder Dov Charney and named fashion executive Paula Schneider as its next CEO, according to cbsnews.com.

In June, the American Apparel board voted to fire Charney, citing alleged misconduct. He has since been under suspension, but has continued to serve as a consultant to the company. On Dec. 16, American Apparel said it officially had terminated his position “for cause” following an internal investigation.

Charney has been the subject of lawsuits that allege he had inappropriate sexual conduct with female employees. In the Dec. 16 statement, the company said that a special committee of its board had come to the conclusion that “it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee.”

Schneider, Charney’s replacement, has served as a senior executive at retail and clothing companies, including Warnaco, Gores Group and BCBG Max Azria. She will officially take over the role Jan. 5. Until then, Scott Brubaker will continue to serve as interim CEO.


American Apparel, which Charney founded in 1998, currently operates 245 retail stores in 20 countries. — L.M.