American Apparel Searches for New CEO - Market News | Financial Buzz

American Apparel (NYSE: APP) Searches for New CEO

American Apparel, Dov Charney, Made in AmericaOver the last decade American Apparel Inc. (NYSE: APP) has become one of the most popular clothing retailers in America. They have adjusted their clothing brand and expanded its reach and demographic.

This new audience and approach has become the reason the clothing company has been raking in millions in revenue. You can see American Apparel clothing worn by millions, especially those who go to EDM and Techno concerts. The clothing made by American Apparel are bright and flashy which tends to go hand and hand with the current EDM scene.

This morning the retailer has announced the termination of Dov Charney, who is the founder and Chairman, this termination of the chairman will take effect immediately. The company is also working on firing Charney as the CEO and also the president of the company. Charney is facing numerous sexual harassment lawsuits that have been filed against him. In a statement yesterday by the company they explained that Charney will be terminated for cause after a contractual 30 day cure period.

The company, known for its racy advertising and bright “Made-In-America” clothes, said it named CFO John Luttrell as interim chief executive as it works with a search firm to look for a permanent CEO. The retailer also appointed Allan Mayer and David Danziger as co-chairmen.

In yesterday’s statement, Mayer said,”We take no joy in this, but the board felt it was the right thing to do.” Since the companies existence Charney has been in the middle of many lawsuits, his notable one came in 2011 when a former employee accused Charney of keeping her as a teenage sex slave in order for her to keep her job; she also sued American Apparel as a whole because she felt like no one in the company stopped Charney from his inappropriate behavior.

Though the company has successfully made millions,it has also made some blundering decisions about spending which has put American Apparels debt amount through the roof. Many financial analyst believe that these debts are around due to Charney’s irresponsible actions. More people believe that American Apparel will do better without Charney at the helm.