Former American Apparel CEO Dov Charney, who had reportedly been accused of imprisoning an employee in his home as a sex slave, has been fired, according to Forbes.
Now that Charney has been fired, American Apparel has reportedly picked its first woman, Paula Schneider, to be the CEO of the company.
“She has served as president or senior officer of a number of retail and apparel companies, including Warnaco, Gores Group, BCBG Max Azria and Laundry by Shelli Segal,” American Apparel said in their statement.
After it was announced that American Apparel would be making a transition with its CEO, the clothing brand’s shares reportedly went up 14%. Schneider’s position as CEO will reportedly become effective as of January 5, 2015, according to Americas Markets.
The board had reportedly suspended Charney as CEO of American Apparel on allegations of misconduct on June 18 and launched an investigation into alleged violations of company policy. The investigation by the company and FTI Consulting reportedly found that “it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee of the Company,” according to a statement from the company.
Charney reportedly served as CEO of American Apparel between 1998 and June 18, 2014. He reportedly founded American Apparel initially to specialize on woman’s tee shirts.
Although American Apparel has made a transition in its CEO, Dov Charney may have tarnished the reputation of the clothing brand for good for some people.