Turns out that Dov Charney wasn't just bad publicity for American Apparel; the CEO was bad for business, too. A day after the company's board of directors unceremoniously fired Charney, American Apparel shares have risen by nearly 20 per cent. Guess Wall Street doesn't like a chairman who allegedly sexually harasses women and masturbates in front of journalists – who knew?
A source close to Charney claimed that he will "fight like hell" to retain the company he founded in 1989, but that looks increasingly unlikely given this recent development.
Charney faced accusations of sexual harassment and gross misconduct throughout his career, but he was also struggling to make American Apparel profitable. For the past few years, the company has seen weak sales and accumulated $240 million in debt.
In unrelated news, Gawker recently discovered a video of Charney dancing around naked to "This Must Be the Place (Naive Melody)" as two alleged American Apparel employees look on.
If any Talking Heads fans want to ruin their day, they can watch that video here.