American Apparel Fires Dov Charney, Names New CEO

December 16, 2014 5:49 PM EST

American Apparel has fired CEO Dov Charney six months after suspending him for alleged misconduct.

The clothing retailer said on Tuesday that it had appointed Paula Schneider, a veteran fashion executive, as his replacement. Schneider has previously worked at clothing group Warnaco and women’s apparel company Big Strike, will take the reins of the struggling clothing retailer on January 5, 2015.

American Apparel says it has terminated Charney, who was removed from the CEO role in June after the company alleged he had misused corporate money and violation of sexual harassment policies. Over the years, Charney has faced repeated accusations of sexually harassing employees and of discriminating against less attractive staff on the grounds that they undermined the corporate aesthetic.

Charney had been serving as a consultant to the company in recent months, but American Apparel said on Tuesday that he has been terminated for cause.

Charney, who founded American Apparel 25 years ago, was initially replaced by interim CEO John Luttrell, who also served as the company’s chief financial officer. But, Luttrell was removed from both roles in September, when turnaround expert Scott Brubaker of restructuring firm Alvarez & Marsal took over as the new interim CEO. Brubaker will continue in that role until Schneider takes over in early January.

David Danziger, co-chairman of American Apparel’s board, said in a statement that the retailer “needs a permanent CEO who can bring stability and strong leadership in this time of transition, and we believe Ms. Schneider fits the bill perfectly.”

Once one of the trendier, youth-focused retailers in the industry, American Apparel has seen its sales fall off in recent years. The company’s same-store sales declined 7% last quarter and it reported another net loss.

In a statement, Schneider said “My goal is to make American Apparel a better company, while staying true to its core values of quality and creativity and preserving its sweatshop-free, Made in USA manufacturing philosophy.”

This article originally appeared on Fortune.com

See the 10 Most Controversial American Apparel Ads

Ad_Vice Italy 230307.ai — The dog does not look like he's comfortable with this photo shoot aimed to sell leg warmers—the only article of clothing that the model is actually wearing.American Apparel

Ad_S Magazine 240308.ai — Apart from the obvious eyebrow raising content in the ad, there was some internet chatter that the male subject of the photo was Dov Charney, himself. American Apparel

Trudy Sweaters.ai — While this photo lacks explicit nudity or allusions to sexual acts, this ad was banned in the UK because the Advertising Standards Authority thought the model's pose was "gratuitous… overtly sexual and that they demeaned women."American Apparel

The ASA also banned this ad in the UK because it was deemed "exploitative" for sexualizing young women.American Apparel

Ad_Boink 220405.ai — American Apparel was regularly criticized for sexualizing students and young models.American Apparel

Ad_Charleston City Paper 270608.ai — When Faye Reagan isn't starring in American Apparel ads, she's starring in porn.American Apparel

Ad_Vice Japan 080106.ai — Don't these models get cold?American Apparel

Ad_Vice 250205.ai — The panel on the left side of the ad is overtly sexual and only tangentially sock related.American Apparel

Ad_Vice 150805.ai — Sex and the male torso play prominent roles in American apparel ads.American Apparel

Ad_Indypendent 210904.ai — And here's the founder and CEO himself. Flavorwire labeled this ad as a representation of "The Dov Charney-Williamsburg axis of evil."American Apparel

See the 10 Most Controversial American Apparel Ads

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