AA Founder's Scandal Has Been Formally Dismissed

After half a year of chaos, American Apparel finally sacked the sexual harassment scandal and the Dov Charney, the brand name founder and former CEO Charny.

In a notice released on Tuesday, Paula Schneider also announced the appointment of Paula Schneider as the new chief executive to replace the Scott Brubaker, which had previously taken charge of the company. Schneider has rich experience in the retail industry. He has worked as an executive in several companies such as Vonaco (Warnaco), Gores Group, BCBG Max Azria, and so on.

Schneider was at risk when AA was in a stormy state. The advertising giant boldly portraged the pornographic edge ball and flaunted the "American made" brand fashion retailer. It has fallen into a predicament of sales decline since 2010, losing nearly $300 million.

In June 18th this year, Dov Charny, President and chief executive officer of AA, was suspended and the company launched an internal investigation of its misconduct. He was accused of embezzling public funds and sexually harassing his employees. He allowed the nude photos of his employees to be posted to the Internet under his own circumstances and permission. He was allegedly confined to his home as a sex slave.

stay Suspension During the period, AA American Apparel He gave Mr. Cheney a vague strategic title, and in October he was seen shouting and shouting at his employees. After an internal investigation conducted by a consulting firm to Cheney, the special committee of the AA board confirmed that " Cheney He is no longer fit to stay as CEO or senior executive, or to continue to work in the company. "

In recent years, Cheney has been notorious for being accused of sexual harassment. He has successively fallen into several lawsuits relating to sexual harassment. He has only appeared in underwear for several times at company meetings and visits. His most famous behavior is probably in 2004 when he masturbated in front of reporters. After he was suspended, Bloomberg Businessweek announced the news on the cover with the headline of "the king of rotten man".

AA's board seems happy to say goodbye to the past and move forward. "We are very pleased that the problem that started this spring - to ensure that AA is led by the right people has been resolved." AA co chairman Alan Mayer (Allan Mayer) said in a press release, "we believe that Paula Schneider's experience and ability can lead the company to long-term success."

It seems that the market also welcomed the change of AA. Its share price rose 5% in the after hours trading period, but so far this year it has fallen to 53%. In addition to the content mentioned in the announcement, AA declined to disclose more details about Dov Charny's internal findings.