American Apparel, which runs the largest garment factory in the United States, also earns high marks for its treatment of workers who make its clothing in a sprawling pink building in downtown Los Angeles.
The company's very success, Charney says, supports his contention that Nelson's allegations are overblown. "I'm the CEO of a public company," he said in a recent interview. "I manage 7,000 employees in 14 countries. . . . Could I have done all this where I'm inappropriate all the time? Where I'm running around in my underwear all the time?"
As creative director of the company, he appointed himself fit model, the person who tests the look and size of his men's line. He has even appeared in the ads. "I weigh 155 pounds, I'm five-10. Am I not fit? Is there any job that is not appropriate for me to do?" he said. "All the big guys did exactly what I do. Versace -- they all wore their own bathing suits."
In a deposition, he said that during the time of Nelson's employment he "frequently had been in my underpants . . . because I was designing an underwear line."
"I'm very proud of the underwear," he added.
In an interview, he also defended appearing in front of Nelson with just his genitals covered. "The demonstration of the" garment, Charney said, "was a product we were considering -- and I was in fit condition for it." He ultimately decided against putting it in the American Apparel line. "It wasn't classy," he said.
Charney's court papers portray Nelson as a poor sales rep who was frequently emotional. By November 2004, according to the papers, Nelson had earned less in commissions than the company had advanced her against those commissions.
"She wasn't performing well," Charney said in an interview. "And we were moving away from commissioned sales people."
Nelson alleges in her suit that she was fired in January 2005, but Charney says he offered to keep her on salary for three months while she looked for other work. "She disappears, never to come back," Charney said. He denies that he ever invited her to masturbate in front of him.
In an interview, Nelson's attorney, Keith Fink, disputed Charney's assessment of Nelson's performance. "If she was a bad sales manager, why did she get a raise? You won't see a single piece of paper in any of her files saying she did anything bad. . . . She was on salary plus commission. She sold more than $3 million worth of merchandise."
