American Apparel (APP) suspended – and says it plans to fire – chairman, president and CEO Dov Charney over alleged misconduct. Late Wednesday, the retailer's board voted to replace Charney as chairman and said it planned to terminate him as president and CEO for cause in 30 days.
The decision to oust Charney "grew out of an ongoing investigation into alleged misconduct," Allan Mayer, who has served as lead independent director for the past three years, said in a statement. Mayer and David Danziger were appointed co-chairmen of the board.
"We take no joy in this, but the board felt it was the right thing to do," Mayer said. "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."
After the firing, American Apparel's stock spiked higher in Thursday morning trading. The company's stock rose 6.7 percent to 68 cents, giving it a market capitalization of $118.5 million.
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