A new era of American Apparel is on the horizon. The clothing company's creator and CEO Dov Charney has been ousted by the company's board of directors, who told the Los Angeles Times that their decision "grew out of an ongoing investigation into alleged misconduct."
Charney has been the constant source of headlines, avoiding lawsuits and allegations for years. There have been claims of sexual harassment, racism, and workplace complaints in the midst of years of serious financial troubles.
The newly-appointed co-chairman of the company, Allan Mayer spoke to the paper about the board's decision.
“We take no joy in this, but the board felt it was the right thing to do,” Mayer said in the statement. “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.”
The company has been suffering financially, reporting a net loss of $106.3 million in 2013.
“This is not easy, but we felt the need to do what we did for the sake of the company,” Mayer continued. “Our decision to do what we did was not the result of any problems with the company’s operations.”