American Apparel board learned of 'disturbing misconduct' by fou - KYTX CBS 19 Tyler Longview News Weather Sports

American Apparel board learned of 'disturbing misconduct' by founder; prepares for fight

Posted: Updated:

NEW YORK (CNNMoney)- The American Apparel board learned earlier this year of "disturbing" information that suggested "misconduct" by company founder Dov Charney, board member Allan Mayer told CNNMoney.

Charney was ousted this week, and Mayer also told CNNMoney that the company is prepared for a fight. "[Charney] certainly indicated that he was not going to accept it," said Mayer.

"It was a shock to him,'' said Mayer. "Dov is a very intensive, emotional person but this was a civilized discussion. There was nothing he said that could change our minds.''

Charney declined to comment to CNNMoney.

Charney was notorious for controversial behavior, including a series of sexual harassment suits filed by employees in recent years.

Mayer acknowledged that the board was aware of these reports, but said that this time it had "concrete facts," which led to an internal investigation.

Mayer would not give additional details. A person with knowledge of the internal investigation said it was related to Charney's response to allegations of sexual harassment.

Charney founded American Apparel (APP) in 1998, building an operation that was famous for its sex-infused advertising campaigns and unorthodox business practices.

The company has struggled. Company shares, which topped $15 as recently as 2007, now trade for less than $1.

Mayer thinks the firing will ultimately be a plus for the struggling retailer.

"There are people who will tell you that Dov's reputation was a real drag on the company. There were people and firms unwilling to do business because Dov ran the company," said Mayer. "Since we announced the decision, we've been contacted by mainstream, top of the line, institutions that have not been interested in supporting us."

Mayer suggested that Charney may try to rally shareholders to his cause, but any changes to the board would be an uphill battle. "He is obviously the largest single shareholders. I'm sure he is talking to lawyers, but we have a very strong team supporting us."

Time may be on the board's side, he said. The company is preparing announcements in the coming weeks that will demonstrate that there is ''life after Dov at American Apparel,'' said Mayer.

"His notion of what's good for the company differs from ours...he thinks keeping him is good for the company, we don't," said Allan.

 

  • Local NewsMore>>

  • UPDATE: Thomas Liles indicted on tampering with physical evidence in Quitman toddlers death case

    UPDATE: Thomas Liles indicted on tampering with physical evidence in Quitman toddlers death case

    Tuesday, September 16 2014 5:20 PM EDT2014-09-16 21:20:10 GMT
    Thomas Liles (photo: Wood Co. Jail) Thomas Liles (photo: Wood Co. Jail)
    UPDATE: QUITMAN (KYTX) - A Wood County grand jury has indicted Thomas Wayne Liles on a charge of tampering with physical evidence after his girlfriend's children were found dead July 24, 2014.More >>
    UPDATE: QUITMAN (KYTX) - A Wood County grand jury has indicted Thomas Wayne Liles on a charge of tampering with physical evidence after his girlfriend's children were found dead July 24, 2014. More >>
  • Obama outlines expanded plan to fight Ebola

    Obama outlines expanded plan to fight Ebola

    Tuesday, September 16 2014 5:03 PM EDT2014-09-16 21:03:55 GMT
    (Photo: Mandel Ngan, AFP/Getty Images)(Photo: Mandel Ngan, AFP/Getty Images)
    Calling Ebola a threat to both global health and national security threat, President Obama said Tuesday he is sending 3,000 troops to West Africa to help contain the deadly virus and prevent it from spreading to the United States and across the globe.More >>
    Calling Ebola a threat to both global health and national security threat, President Obama said Tuesday he is sending 3,000 troops to West Africa to help contain the deadly virus and prevent it from spreading to the United States and across the globe.More >>
  • Peterson's attorney responds to new allegations he injured another son

    Peterson's attorney responds to new allegations he injured another son

    Tuesday, September 16 2014 9:18 AM EDT2014-09-16 13:18:09 GMT
    HOUSTON (KHOU) -- New accusations against Adrian Peterson come from another mother who has another four-year-old son of Peterson, and also involve Peterson striking his boy as a form of discipline.Peterson's attorney Rusty Hardin responded with the following statement:The allegation of another investigation into Adrian Peterson is simply not true. This is not a new allegation, it's one that is unsubstantiated and was shopped around to authorities in two states over a year ago and nothing came...More >>
    HOUSTON (KHOU) -- New accusations against Adrian Peterson come from another mother who has another four-year-old son of Peterson, and also involve Peterson striking his boy as a form of discipline.Peterson's attorney Rusty Hardin responded with the following statement:The allegation of another investigation into Adrian Peterson is simply not true. This is not a new allegation, it's one that is unsubstantiated and was shopped around to authorities in two states over a year ago and nothing came...More >>
Powered by WorldNow

CBS19, MYTX & KCEB
2211 ESE Loop 323
Tyler, TX 75701
Phone (903) 581-2211
Fax (903) 581-5769

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KYTX. All Rights Reserved. Users of this site agree to the Terms of Service, Privacy Notice/Your California Privacy Rights, and Ad Choices.