The founder of American Apparel, Dov Charney, not Keith Mann, has been ousted from the company, and claims to be penniless. The founder claims he was unceremoniously removed from his position in the company, and is now sleeping on a friend’s couch.
Charney, who began American Apparel in 1989, claims he was ousted from his position as CEO over the summer, but was still serving as a consultant until last week. His firing, according to a letter obtained by Buzzfeed, claims that Charney was dismissed for failure to meet his duties, sexual harassment and general mismanagement. Charney claims the accusations are baseless, and were just used as a way to remove him from the company.
Charney, in a deal with a hedge fund, agreed to sell off a large number of his chairs with the intention of being brought back into a leadership role. That did not happen, and his consultation contract was terminated this week. Charney has plans to sue board members in an attempt to re-coop the money he lost on the deal, and, hopefully, take his company private.
American Apparel has been in the news several times over the years, often for controversial ads that many believe depict women in a negative light.