According to Business Wire, American Apparel’s Board of Directors has voted to officially oust Dov Charney. The company’s former president and CEO was suspended earlier this year due to an ongoing investigation into alleged misconduct.
Effective January 5, 2015, Paula Schneider joins the company as chief executive officer. Scott Brubaker, who has been acting as interim CEO will remain with the company after Schneider takes over the post to serve as a consultant through the transition.
Though American Apparel has finally decided to end its relationship with Charney, the fight is probably not over. If Charney sues, the company can look forward to what would likely be a nasty and lengthy legal battle.
We have reached out to American Apparel for comment.