Ousted American Apparel chief accuses board of acting illegally

Dov Charney’s lawyer demands his reinstatement

Dov Charney, the American Apparel founder who was ousted as chief executive officer last week, accused the board of acting illegally when it moved to fire him for cause.

A letter sent by Mr Charney’s lawyer demands that he be reinstated as chief executive and chairman and calls for a meeting no later than today. The move signals American Apparel won’t have a smooth transition as the retailer looks for a new leader and tries to fix its finances.

The showdown follows an investigation into the conduct of Mr Charney, who has faced sexual-harassment lawsuits over the years and drawn controversy for provocative advertisements. – (Bloomberg)