American Apparel Founder Fired For 'Misconduct'
American Apparel has ousted its controversial founder Dov Charney as chairman following an ongoing investigation into alleged misconduct.
The clothing company's board also said it intends to dismiss Mr Charney as president and chief executive.
Mr Charney has been repeatedly targeted in sexual harassment lawsuits.
"We take no joy in this, but the board felt it was the right thing to do," said Allan Mayer, who was appointed co-chairman along with David Danziger.
The company, known for its racy advertising and bright "Made-In-America" clothes, said it named CFO John Luttrell as interim chief executive.
Mr Charney, 45, who founded American Apparel in 1998, has been at the helm since 2007 when the company went public.
Several lawsuits have alleged inappropriate sexual conduct with female employees.
He has acknowledged having sexual relationships with workers, but said they were consensual.
In 2011, a former employee had accused Mr Charney of keeping her as a teenage sex slave, amid fear she might otherwise lose her job.
She also sued American Apparel and its directors for failing to stop Charney from acting as a "sexual predator".
The Los Angeles-based company manufactures clothes and sells them in its own 249 retail stores in 20 countries.