Clothing and accessories retailer American Apparel ousted its controversial founder Dov Charney as chairman effective immediately and moved to fire him as CEO and president following an ongoing investigation into alleged misconduct.
Charney, who has been repeatedly targeted in sexual harassment lawsuits, will be terminated for cause after a contractual 30-day cure period, the Los Angeles-based company said in a statement late Wednesday.
The company's shares, which have lost more than two-thirds of their value over the past year, were up more than 20 percent in premarket trading Thursday. They closed Wednesday at 64 cents on the American Stock Exchange. (Click here for the latest price.)