Pin It
1101461

American Apparel takes restraining order against founder

This prevents Dov Charney from making negative statements about the company to the press

Dov Charney just won't let go of American Apparel, the company that fired him almost a year ago. Due to comments he's made in the press and behaviour he's engaged in since being fired, the company has filed a restraining order against him.

Charney is not allowed to seek the removal of any member of the company's board of directors, whether directly or indirectly, and is also not allowed to make any statements to any third party, including the press, that "disparages or negatively impacts on the Company or its current former or future employees, officers or directors".

The legal battle has been going on for some time and it's getting pretty ugly. Charney sued Standard General – the hedge fund that governs the fashion company's board of directors – for defamation last month, and they sued him right back for breaking terms of an agreement he previously signed with them.

He's spoken at length about the rift between him and the company he founded, telling the Financial Times last year that the allegations that led to his sacking were "entirely false".

Charney also referred to the whole thing as a "hateful PR campaign against [the company's] founder".

Dov Charney was fired from American Apparel after a vote ousted him last year. The charges included allowing an employee to set up a "revenge porn" blog, using company money to pay off former female employees who had accused him of sexual harrassment, repeatedly engaging in sexual harassment and verbal abuse and misusing company funds for his own benefit.

However, it's not all roses for the company either. The distraction of their legal battles against the founder may have contributed to the fact that the stock has fallen by 50% since last July. Dov has left the building, tried to get back in, and left again, having been barred.