Charney disputes reasons for ouster, says some American Apparel holders want him to remain CEO

Associated Press

American Apparel founder Dov Charney isn't planning to leave the company quietly.

Charney said Monday that he will fight the company's attempt to terminate his employment and says some shareholders want him to remain head of the company. Charney said he plans to hold discussions with American Apparel, its board, and other shareholders about a variety of issues including the makeup of the board, corporate governance, and the future of the company.

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"Mr. Charney believes that such termination is without merit and intends to contest it vigorously," the company founder said in forms filed with the Securities and Exchange Commission.

Charney, who founded American Apparel Inc. in 1998, disclosed ownership of 47.2 million shares. That gives him a 27.2-percent stake in the company.

On Wednesday American Apparel suspended Charney as chairman and said it planned to remove him as chairman, president, and CEO. The Los Angeles company said it was making those moves because of an ongoing investigation into potential misconduct.

Charney has been the subject of lawsuits that allege he had inappropriate sexual conduct with female employees. He has said he had consensual sexual relationships with workers.

Shares of American Apparel lost a penny to 68 cents in afternoon trading. The stock has fallen 64.8 percent over the last year.