Real Cause For CEO Get Suspended

The CEO has been voted out by his company’s board of officials. American Apparel’s CEO Dov Charney, was terminated on June 18th, after a 30 day stay period by the company’s officials, as a counteract to various allegations of misconduct.

American Apparel is a vertically integrated clothing producer, distributor, and retailer of exclusive fashion basic attire established in downtown Los Angeles, California, found by Dov Charney in 1989. The company vends casual outfits and fittings to both men and women, makes and prints peculiar designs and advertisements is acknowledged for its sexy, controversial publicizing with pictures of teen-age models.It is preeminently identified for manufacturing rudimentary, solid-color cotton knitted garments such as T-shirts and undies.

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The Chief Executive Officer is said to been fired as stipulated in the contract. The Board put off Mr. Charney from his designations as President and CEO, effective immediately, pending the expiration of the cure period and has employed John Luttrell as Interim Chief Executive Officer. John Luttrell, who at present works as an Executive Vice President and Chief Financial Officer, will endure the same as well.

Accusations on American Apparel

The American Apparel (APP) is always known to play by its own protocols.  Dov Charney, a scandalously autonomous and showy sartorial fabricator and trader is facing, high-drama legal problems including; sexual harassment suits as the suits charge that his actions and the rest of the culture resulted in hostile work environment, a wage-and-hour suit, deliberate infliction of emotional agony, defilement of civil rights, immigration problems, three shareholder suits and above all it is on its way of bankruptcy.

Comments and conclusions

According to the Los Angeles Times, a source familiar with the matter says, “Charney is going to fight like hell to get this company back, but he won’t succeed.”

While Dov Charney, says he was verbally and physically abusive to the point of rubbing dirt in his face and now the company is trying to muzzle him, by pointing at Michael Bumblis.

 
 
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