American Apparel issues its founder with restraining order
IT’S A special case when the company you founded takes out a restraining order against you, but American Apparel’s relationship with founder and former boss Dov Charney is a special case.
The company confirmed in a regulatory filing yesterday that it had been granted a restraining order against Charney, who was dramatically ousted from his role after a series of sexual harassment lawsuits last year, by a court in Delaware.
The order backs up a standstill agreement reached last year, which prevents Charney from removing board members and making negative press statements against the company and its employees.
The former boss was finally ousted in December, after months of wrangling. Although he was fired from his position as chairman and suspended from his roles as president and chief executive in June, he was brought back as a consultant after he threatened to sue the company.
The board hoped that ousting Charney, known for his controversial leadership (including regularly stripping off at work), would transform the company’s fortunes. But yesterday shares were trading at 55 cents, 3.22 per cent down, their lowest since December.