American Apparel officially fires Charney, hires new CEO

American Apparel has officially terminated founder Dov Charney from his position as CEO and named Paula Schneider to fill the role. Charney was initially removed from the job in June for misconduct.

Schneider was previously with Warnaco, Gores Group and BCBG Max Azria. She will take the helm on Jan. 5, reported Bloomberg.

Scott Brubaker was acting as interim CEO while the board decided Charney's fate. In the meantime, the company's founder was contributing to American Apparel as a paid consultant.

The board fired Charney due to infractions such as violating the chain's sexual harassment policies and using company funds for personal travel. The board put together a special committee and hired FTI Consulting to conduct an internal investigation.

He later teamed up with Standard General to amass a large stake in the company, however, the hedge fund decided to replace all of American Apparel's board in return for around $25 million in aid. It did not weigh in on whether Charney should return as CEO.

Charney remains the fashion retailer's largest shareholder and expects to maintain a "strong relationship" with the company.

However, it does not appear that all employees share the view of the board, as more than 30 executives at American Apparel have already asked them to reconsider their decision.

For more:
-See this Bloomberg article
-See this Bloomberg article

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