Controversial brand founder Dov Charney has been given the boot at American Apparel. The board of directors of the publicly held Los Angeles-based company announced that it is replacing him as chairman and terminating his employment as president and CEO “for cause.” The termination is expected to take place officially in 30 days, per the terms of his contract. The board has requested his official resignation at that time.

Charney has been the subject of numerous lawsuits claiming sexual misconduct over the years and board member Allan Mayer said the decision to replace Charney involved “an ongoing investigation into alleged misconduct.”
John Luttrell, a veteran of Wet Seal and Old Navy, who has been with American Apparel since 2011 and who serves as executive vice president and CFO, was named as interim CEO.  He will continue to hold his current other two positions.
Mayer and David Danziger were named as co-chairs of the board.
“We take no joy in this, but the board felt it was the right thing to do," said Mayer in a company 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.”

American Apparel, which manufactures, distributes and retails sweatshop-free Made in the USA basics, operates 249 stores in 20 countries. Charney founded the company in Los Angeles in 1989.