The new regime at American Apparel Inc. is still trying to distance itself from the company’s ousted founder Dov Charney, who’s agitating to regain a seat at the table.
“Many of you have expressed concern that Mr. Charney continues to claim he is returning to American Apparel,” wrote Brown on Friday in a memo first obtained by BuzzFeed. “He is not. You can and should judge the facts for yourself, but we wanted to provide you with some information.”
Brown reminded workers that the board found that Charney “repeatedly violated the company’s sexual harassment and anti-discrimination policy and used corporate assets for personal, nonbusiness reasons.” She also noted that the Securities and Exchange Commission has “launched a formal investigation into possible violations of the securities regulations during the time that Mr. Charney was ceo. Mr. Charney no longer has the ability to influence corporate actions as either an executive, employee or shareholder.”
While technically on the sidelines, Charney still to have enough pull to provoke the reaction. He also has a roughly 43 percent stake in the company, although not all the voting rights of that stake. And he has been threatening a multi-million dollar lawsuit and has been agitating to get the workers to vie for change. The battle of words continues.