Los Angeles Clothing brand American Apparel has appointed its first female CEO.
Paula Schneider is a long-time executive member of the fashion industry and has worked at Gores Group, Warnaco Group and BCBG Max Azria.
“We are confident that Paula Schneider has the skills and background to lead the company to long-term success,” said American Apparel co-chairman Allan Mayer.
Schneider’s appointment to the top job comes in wake of the company firing its previous CEO and founder, Dov Charney. Charney was fired from the business for “cause” on Tuesday, with the company saying he had violated the terms of his employment agreement.
Charney’s position as CEO has been in question for some time, however, as he has been at the centre of a series of sexual assault and sexual harassment lawsuits.
He famously uses his employees as models, often very scantily-clad, as he believes “sex is inextricably linked to fashion and apparel.” He was recently embroiled in a lawsuit surrounding a nude photos of one of his models that were distributed without her permission. On another occasion, he inappropriately exposed himself to a female employee.
He is also accused of keeping an employee locked in his home as a sex slave.
Charney has been known to engage in this kind of sexual misconduct for many years, but board members allegedly resisted firing him because they felt he was the beating heart of the company, as its founder, president and CEO.
In June, the board made a decision to suspend him pending investigation into “alleged misconduct and violations of company policy.” The results of the investigation led them to decide not to reinstate him.
Charney was consulting for the company during his suspension, but American Apparel has announced that relationship has also been terminated. He is no longer an employee of the company.
At the centre of the board’s decision to fire Charney was that he had breached his employment agreement by misusing company funds and failing to stop the publication of explicit images of an employee. The employee in question had already filed a sexual harassment suit against him when the photo was published.
“Naturally, I am disappointed with the circumstances, and my over 25 years of deep passion and commitment for American Apparel will always be the core DNA of the company,” Charney said in a statement.
The string of scandals associated with Charney has left the company reeling. Its stock prices, which were as high as $15 in 2007, have been less than $1 for the past few years. The company has lost $300 million in the last four years.
Schneider hopes to be able to revive the business, and certainly has the credentials and experience to do so.
“We’re pleased that what we set out to do last spring—namely, to ensure that American Apparel had the right leadership—has been accomplished,” said Mayer.