The retailer modified a media policy last week after it was accused of “silencing” employees, according to an internal email obtained by BuzzFeed News.
The $10.4 million spent on the investigation is high given American Apparel had only $8.3 million in cash as of Dec. 31.
BuzzFeed News exclusive: American Apparel employees have filed two complaints with the National Labor Relations Board, one alleging intimidation of workers, and another of a ban on speaking to the press. Update: A third complaint was filed late Friday.
Dov Charney appealed to more than 300 current and former textile workers this past Saturday in a backyard meeting in South Central Los Angeles. The American Apparel founder was officially fired in December but refuses to walk away from the company he created in the late ’90s.
The company’s new CEO, Paula Schneider, recently responded to a series of mass emails sent to employees by an anonymous insider. The emails were critical of American Apparel’s new management and the hedge fund backing the company.
Dov Charney, the founder of American Apparel, told Bloomberg News that he’s “down to” his last $100,000 and sleeping on a friend’s couch. How is that possible?
Ousted CEO Dov Charney told Bloomberg News that he’s been living on the Lower East Side on a friend’s couch. He also plans to “sue everyone,” as per the report. Updated with comment from Standard General.
More than 30 employees signed a letter to American Apparel’s board in support of Dov Charney, who was officially fired Dec. 16. The letter, in full, is below.
The decision to fully boot Charney, who was still working for American Apparel as a paid consultant, comes after an internal investigation. The board suspended him earlier this year.
The retailer’s board will mostly be replaced as Standard General lends up to $25 million to the company. There’s a still a chance Charney could return as CEO.
“You’re on your own, buh-bye, thank you,” Charney said when contacted by BuzzFeed for comment.
It doesn’t look as though Charney will be returning as the CEO of American Apparel any time soon, but he’s found a way to get some of what he wants.
Corporate boards will typically tolerate a founder’s eccentricities, and even bad behavior, as long as the business is performing well. But as performance declines, so too does tolerance.
The page appears to have been made by current or former employees. They also can’t spell the new CEO’s name.
Charney, who holds a roughly 27% stake in American Apparel, was approached by supporters after his termination and is discussing board and management changes with them, according to a regulatory filing today.
A source close to Charney says his handpicked American Apparel board turned on him purely for financial reasons, and that they have known about the other factors cited in his termination letter for a long time. The source’s grievances were first aired on Whisper.
Sources dismiss reports the company is up for sale. They say the newly surfaced video of Dov Charney dancing nude with a potential employee wasn’t part of the board’s decision.
Updated: The retailer’s board replaced Charney as chairman and said it intends to fire him “for cause.” A spokesperson declined to comment; Charney won’t talk.
Oren Safdie, a 48-year-old playwright, premiered the play Unseamly in Montreal last month. He tells BuzzFeed, “All my plays touch on people I know in some ways.” Update: American Apparel notes the play is a work of fiction and that CEO Dov Charney loves his cousin.
The clothing company, which posted another annual loss Thursday, said it received a letter from the NYSE saying it’s “not in compliance with the continued listing standards of the Exchange.” It has to submit a plan for how it plans to fix things by March 21.
The controversial 45-year-old American Apparel founder has high hopes for the company despite its recent financial woes. He also says he isn’t stepping down anytime soon and that he doesn’t technically believe in “Made in the U.S.A.”
Menstrual blood features prominently in the printed tee. So, you know, pretty NSFW.
Another side-by-side comparison.
The 1970s leisure suit — made of 100% synthetic CHEESE. 20 photos.
American Apparel recently received a stay of execution thanks to investors pumping $15 million into the near-bankrupt clothing company. Let’s celebrate by looking at their naughtiest ads. Their naughtiest ads from this year, that is. A mega list of every American Apparel ad featuring nudity or blasé soft core would stretch longer than Dov Charney’s court docket.
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So many lost souls led astray by the dark path of shiny, gold leggings and black lace unitards. Which is your favorite?
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American Apparel founder Dov Charney forced a teen worker in Chelsea to become his sex slave.
American Apparel founder Dov Charney allegedly turned a teenage employee into his sex slave.
American Apparel founder is being accused of keeping a teenage employee captive and forcing her to perform sex acts.