Remember last June when the board of American Apparel fired its founder and CEO Dov Charney?
And then he got some backers and bought up even more stock than he already owned, and somehow got to stay on as a consultant? And then, after all the scandalous disclosures of information about Charney, things seemed to settle down.
Well, Happy Chanukah, Dov! You're fired for good now.
According to WWD, and various reports popping up in the media yesterday evening, Charney has been officially fired for cause, and, to emphasize that fact, a new CEO has been hired to replace him permanently. Paula Schneider, who has held executive positions at major companies like Warnaco, BCBG Max Azria and Laundry by Shelli Segal will be taking over the CEO position on January 5th. WWD's report hints that a deal to allow Charney to have some sort of official, ongoing role within American Apparel may have been under discussion as recently as a few weeks ago, but it apparently went sour leading the company's board to revert back to their original plan which was to get rid of him entirely.
Is it all over for Dov? Probably, but even fired, he is still American Apparel's largest shareholder, and his generally combative nature regarding this issue suggests that he can be expected to be something of a thorn in the board's side at the very least for some time to come. Stay tuned to see how this continues to play out.
Dov Charney's Firing Could Spur Lawsuits (WWD)
SCANDAL ROUND-UP: American Apparel Gains Stability Via Hedge Fund -Charney's Future In Question
See all American Apparel coverage HERE