Los Angeles, Ca., USA - June 19, 2014, Los Angeles, Ca., USA - American Apparel, Inc. voted to replace Dov Charney as chairman and notified him of its intent to terminate his employment as president and CEO for cause.
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It is expected that the termination will be effective following a 30-day cure period required under the terms of Mr. Charney's employment agreement. The Board suspended Mr. Charney from his positions as President and CEO, effective immediately, pending the expiration of the cure period. In accordance with the terms of his employment agreement, the Board intends to request Mr. Charney's resignation as a member of the Board concurrently with the effective time of his termination.
Mr. Charney has been the Chief Executive Officer at American Apparel, Inc. since 1998, President from December 12, 2007 to October 2010, and also served as its Senior Partner. He founded American Heavy Inc., in 1989 and served as its Chief Executive Officer until 1996.
Mr. Charney is a Graduate of Choate Rosemary Hall and St. George's School of Montreal. He attended Tufts University in Massachusetts.
In 2004 he became a Young and Ernst Entrepreneur of the Year; Retailer of the Year in the Michael Awards in 2008; Man of the Year by the Apparel Magazine and the Fashion Industry Guild; in 2008 his brand was named Label of the year by The Guardian and he won the Marketing Excellence Award during the LA Fashion Awards in 2005.
At the same time, the Board appointed John Luttrell as Interim Chief Executive Officer.
Mr. Luttrell, who has been with American Apparel since February 2011 and currently serves as Executive Vice President and Chief Financial Officer, will continue in those positions as well. Prior to joining American Apparel, Mr. Luttrell served as Executive Vice President and Chief Financial Officer of Old Navy, The Wet Seal and Cost Plus.
Also effective immediately, the Board appointed Allan Mayer and David Danziger as Co-Chairmen to replace Mr. Charney as Chairman of the Board.
Mr. Mayer, who has been a member of the Board since the company went public in 2007 and has served as its lead independent director for the past three years. ■