BUSINESS
06/18/2014 11:15 pm ET Updated Jun 19, 2014

American Apparel Board Suspends CEO Dov Charney Amid Misconduct Allegations

The board for American Apparel has suspended CEO Dov Charney amid misconduct allegations.

The board of directors voted Wednesday to notify Charney of its intention to end his employment as president and CEO, according to a press release.

John Luttrell, the current Executive Vice President and Chief Financial Officer, has been named interim CEO.

"We take no joy in this, but the Board felt it was the right thing to do," newly-appointed board co-chairman Allan Mayer said, adding that the decision was based on an ongoing investigation into misconduct allegations. "Dov Charney created American Apparel, but the Company has grown much larger than any one individual."

American Apparel states it will remain focused on manufacturing sweatshop-free, Made in USA products.

Charney has faced multiple controversies during his years as CEO, including several lawsuits alleging sexual harassment, which he famously proclaimed were a "testimony to his success."

"I'm not an angel," Charney told HuffPost in 2013. "I'm normal guy, but we're paying a fair wage or at least attempting to pay a fair wage. We haven't nailed it, but we're trying to do it."

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