At the same time as the announcement of Charney’s termination, the board appointed Paula Schneider as the company’s new CEO effective January 5, 2015.
Charney was suspended as president and CEO of American Apparel on June 18 for “alleged misconduct and violations of company policy,” according to Tuesday’s announcement. The board appointed a special committee to oversee an internal investigation by FTI Consulting into the allegations against Charney. The result:
Based on this investigation, the special committee determined that it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee of the Company. While under suspension as CEO, Mr. Charney had been serving as a consultant to the Company. This relationship has now been terminated.
Charney is reported to have hired Patricia Glaser, an attorney who works with celebrity clients, to help him fight the firing. Now that American Apparel has officially fired Charney, the skirmishing is over and the real fight is set to begin.
American Apparel’s stock was up about 14% in after-hours trading to $0.66, after closing up nearly 5.5% at $0.58. The stock’s 52-week range is $0.46 to $1.45.
ALSO READ: America’s Most (and Least) Healthy States
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.