March 25, 2011 |
Los Angeles clothing maker American Apparel Inc. lashed out Thursday against four former employees who filed a sexual harassment lawsuit against the company and Dov Charney, its chief executive. The company said that the four women were friends who were colluding to "shake down" Charney and the company for money and that it had "voluminous evidence" to prove that the allegations were false. "These allegations are preposterous," said Frank Seddigh, a lawyer for American Apparel.
March 10, 2011 |
A New York judge has temporarily halted a $250-million sexual harassment lawsuit brought by a former employee against Dov Charney, the controversial chief executive of American Apparel Inc. The ruling came in response to a motion filed Wednesday by the Los Angeles clothing maker that contended that the issues raised by Irene Morales' lawsuit should be settled in confidential arbitration and not at trial. She alleged in her lawsuit that Charney forced her to perform oral sex in his New York apartment in 2008, when she was 18, and that he sexually harassed her for months, including demanding that she send him explicit photographs, e-mails and text messages.
March 9, 2011 |
American Apparel's brand identity has always been closely linked to its provocative chief executive, Dov Charney. His unconventional, edgy persona helped fuel the Los Angeles clothing maker's swift rise up the retail ladder, turning what began as a gritty wholesale T-shirt operation into a hipster empire known for colorful cotton staples and overtly sexual advertisements, some photographed by Charney himself. But it has also repeatedly landed Charney in hot water, with former employees accusing the 42-year-old founder of crude remarks, a hostile work environment and a promiscuous lifestyle that includes having consensual sex with his employees, according to one of his former lawyers.
March 8, 2011 |
A former employee of the troubled Los Angeles clothing firm American Apparel Inc. accused the company's chairman and chief executive, Dov Charney, in a lawsuit of holding her captive and forcing her to perform sexual acts. The suit, filed in a New York trial court in Brooklyn, seeks $250 million in damages. It accuses Charney of sexual harassment, retaliation, gender discrimination and creating a hostile workplace. The suit also accuses the company's other eight board members of failing to protect the employee, Irene Morales, from an executive they should have known was a "sexual predator.
December 11, 2010 |
Shareholders elected to keep American Apparel Inc. founder Dov Charney on its board of directors, according to voting results announced at the troubled Los Angeles clothing maker's annual meeting Friday. In recent months American Apparel has been beset by a host of problems including sales declines, losses, problems with its debt and delayed quarterly filings. Two other board members, Mark Samson and Mark A. Thornton, were also reelected. Each will serve a three-year term. Shareholders also approved the ratification of Marcum as the company's independent auditor.
November 10, 2010 |
Troubled Los Angeles clothing maker American Apparel Inc. reported double-digit sales declines and a $9.5-million quarterly loss Tuesday and warned that it had "substantial doubt" about its viability going forward. In a continuing effort to turn itself around, the company announced several aggressive efforts to cut costs. It said it might have to close some stores, reduce manufacturing production levels, renegotiate real estate leases and reevaluate staffing levels. For the quarter ended Sept.
August 19, 2010 |
A day after American Apparel Inc. admitted that its future hangs by a thread, the hipster Los Angeles clothing maker and retailer was scrambling to overhaul operations, bolster sales and repair its faltering image. After warning this week that there was "substantial doubt that the company will be able to continue as a going concern," the company saw its stock fall 21.3% on Wednesday, ending at an all-time low of 81 cents. That was on the heels of a 26% plunge the day before. In recent months, the troubled company has been beset by sales declines, losses, a crackdown on undocumented workers, problems with its debt, delayed quarterly filings and, most recently, an investigation by the U.S. attorney's office in New York related to the company's abrupt change in accounting firms.
August 11, 2010 |
Troubled clothing firm American Apparel Inc. said Tuesday that its second-quarter sales probably fell compared with a year earlier and that it expected to report a loss. In a filing with the Securities and Exchange Commission, the Los Angeles company also said that it was "unable, without unreasonable effort and expense," to file its quarterly report on time for the three months that ended June 30. The company blamed its weak total sales on a decrease in retail sales, although it didn't provide specific figures.
June 25, 2010 |
Cash-strapped clothing maker and retailer American Apparel Inc. got a boost from Los Angeles billionaire investor Ron Burkle, who disclosed Thursday that he had acquired a 6% stake in the company saddled by debt and weak sales over the last year. According to a filing with the Securities and Exchange Commission, Burkle reported he had purchased 4.3 million shares in the open market for $5.9 million between June 10 and Monday. The filing said Burkle made the purchase "because, in his opinion, such shares were undervalued."
CALIFORNIA | LOCAL
January 25, 2008 |
The sexual harassment and wrongful termination lawsuit filed by a former employee against American Apparel and its founder, Dov Charney, will be decided by binding arbitration, Charney's attorney said Thursday. Both sides will be bound by the decision of the arbitrator or private judge they select. That means it is unlikely a jury will hear the plaintiff's account of Charney conducting business clad only in his underwear or, occasionally, something even skimpier.