The board of American Apparel, a fashionable clothier with racy advertising, has moved to oust the company's controversial founder.
In a statement late Wednesday, the retailer said that its board had voted to fire the founder, Dov Charney, as chief executive. Under the terms of his contract, he will be suspended immediately and formally terminated after 30 days. The directors have also voted to remove him as chairman.
According to one company director, Allan Mayer, the move was made amid a continuing investigation. It follows years of controversy that have troubled Charney, including several cases of sexual harassment.
The decision also comes after years of financial underperformance, including times when the company needed rescue financing to stay afloat. Shares in the retailer have fallen 84 percent during the past five years, to 64 cents as of Wednesday's close.