
American Apparel replaced its CEO, Dov Charney, who has faced accusations of sexual harassment, after an investigation into misconduct at the casual clothing maker he created.
The board named Chief Financial Officer John Luttrell, a former executive with retailers Old Navy, Wet Seal and Cost Plus, as its interim CEO, according to a statement yesterday. Mr. Charney was suspended and will be terminated for cause after a contractual 30-day wait, Los Angeles-based American Apparel said.
Mr. Charney, 45, tested limits with the use of young, scantily clad models in advertisements for the company’s American-made underwear. That approach spilled over into his management, spawning lawsuits alleging sexual harassment. The company has lost money recently under Charney and its stock has fallen under $1. His dismissal may trigger a notice of default, American Apparel said.
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