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The directors of clothing retailer American Apparel Inc have today rejected a demand to meet and reinstate ousted CEO Dov Charney, a source cheap soccer jerseys close to the matter said. Last week, company founder Charney was stripped of his titles of chief executive, chairman and president after allegations of misconduct. American Apparel's board cited the Canadian's alleged misuse of company funds and role in disseminating nude photos of an ex-employee who had sued him.
READ: American Apparel shares rise after sacking of CEO Dov Charney
Charney was initially known for insisting on sweatshop-free manufacturing clothing in the United States but eventually became notorious for conduct like attending meetings in his underwear. Over the weekend a video showing Charney dancing naked while on louis vuitton replica handbags the phone in front of two female employees surfaced online. Charney's lawyer demanded a meeting on Monday, and the board's refusal to meet with and reinstate him makes a legal battle with the ex-CEO, who still controls 27 percent of the company's stock, more likely.
In the letter to the board, sent on Thursday, lawyer Patricia Glaser said the company had failed to give Charney 21 days' notice of his severance package as required by law, making his dismissal "not only unconscionable but illegal."
READ: American Apparel founder Dov Charney fired from company
A link to the letter, whose receipt the source familiar with the matter confirmed, was provided in an article on the Wall Street Journal's website. The cheap soccer jerseys letter threatened legal action should 45-year-old Charney not regain his executive positions. The board of American Apparel sees no point in meeting with Charney at this time, the person close to the matter said. The source also denied an accusation by Glaser that the board gave Charney an ultimatum on Wednesday: resign voluntarily to receive $1 million a year over four years as a consultant, or be terminated for cause.