American Apparel fired former CEO and founder Dov Charney after an internal investigation concluded that he violated the terms of his employment agreement. He will be replaced by Paula Schneider, formally of Warnaco and BCBG Max Azria, effective January 5, 2015. Charney was suspended as president and CEO this past June for alleged misconduct and violations of company policy (think: violating the chain’s sexual harassment policies and purchasing travel for family members with company funds).
"We're pleased that what we set out to do last spring—namely, to ensure that American Apparel had the right leadership—has been accomplished," said Allan Mayer, board co‐chairman, in a statement. Schneider has a "reputation for improving the financial performance and operational efficiencies of numerous global fashion brands," according to the statement. The termination was "for cause," American Apparel said in a statement. Interim CEO, Scott Brubaker, will remain on until Paula Schneider takes over as CEO.