American Apparel ousts founder Dov Charney over alleged misconduct

Montreal-born Dov Charney, the CEO of American Apparel, has been kicked out of thecompany that he founded in 1998.

In a statement released on Wednesday evening, the clothing chain'sboard of directors said itvoted to oust Charney in light of an "investigation into alleged misconduct."

"We take no joy in this, but the board felt it was the right thing to do," said AllanMayer, one of the two co-chairman appointed to replace Charney.

"Dov Charney createdAmerican Apparel, but the company has grown much larger than any one individual and we are confident that its greatest days are still ahead."

Charney, who was born andraised in Montreal, has been the subject of several lawsuits alleginginappropriate sexual conduct with female employees.

He hasacknowledged having sexual relationships with workers, but said theywere consensual.

The board saidCharneywould be terminated as president and CEO following a 30-day grace period.

John Luttrell, who is currently American Apparel's executive vice-president and CFO,has been appointed as interim CEO.

The board says it is working with a search firm to find a permanent replacement.

Charneycould not be reached for comment on Thursday morning.

The company, founded by Charney in 1998, manufactures clothes andsells them in its249 retail stores in 20 countries, with about 10,000 employees.