American Apparel is no stranger to controversy from their outrageous act to the antics of their CEO but it looks like it is all about to end.
Dov Charney, the CEO of American Apparel, was suspended earlier in June this year for allegedly sexually abusing 18-year-old girl. He was still kept on board as a consultant until this month where the board announced that they officially severed all ties with Charney after investigation from a third-party consulting firm.
American Apparel is hiring Paula Schneider (formerly of BCBG and Laundry) to replace him starting January 5.
While Charney is still a majority shareholder in the company, Bloomberg has reported that Charney is down to his last $100,000 and currently sleeping at his friend’s couch. Charney earned $800,000 a year when he worked at American Apparel and blames his disastrous financial situation to the hedge fund Standard General.
Karma is real. All these questionable characters that were sitting as CEOs are being ousted one by one. These days, celebrities aren’t the only ones that belong to a public spectacle.