What Happened to American Apparel & Founder Dov Charney

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It seemed like American Apparel stores were ubiquitous, which was indeed the intention.

The label, established by Dov Charney back in 1989, experienced a surge in fame during the mid-2000s. People were captivated by its simple yet versatile design in various colors, and its fashionable attire presented in enticing ad campaigns that embodied an achievable level of chic style.

According to Johnny, the former district merchandising manager, in the Netflix documentary “Trainwreck: The Cult of American Apparel,” he described it as a fashion movement and considered Dov as its head or leader.

This documentary delves deep into the swift ascendancy of the LA brand, leading up to its downfall after Dov’s dismissal from the firm in 2014 due to rumors of sexual misconduct, causing its collapse.

TopMob News contacted Charney regarding the alleged misconduct outlined in the document, however, they have yet to receive a response. Repeatedly, he has denied any wrongdoing, and it’s important to note that lawsuits brought against him by former employees were taken to private arbitration proceedings.

Previous workers characterized their time with Charney as an intense, up-and-down journey, filled with exhilarating peaks and progressively concerning valleys.

Jonny enjoyed every moment of it right up until he didn’t. Carson, a previous store manager, chimed in, describing the situation as becoming increasingly chaotic and out of control.

Throughout, Charney was brash, outspoken and unapologetic about using sex to move merchandise. 

In an interview with the New York Times back in 2004, he expressed his belief that he was destined to be a salesman at heart. He enjoys peddling products that people adore, and it brings him joy when someone tries on an item like a bra or tie-dye T-shirt and exclaims their affection for it.

Here are the biggest bombshells detailed in Trainwreck: The Cult of American Apparel:

As the devoted recruit, I recall my initial hiring at the store being more about fitting the vibe, since I shared similar physical attributes with the models featured in the brand’s advertisements – tall and slender, just like them. This is what I shared during Netflix’s exploration of American Apparel, titled Trainwreck: The Cult of American Apparel.

In the documentary, Jonny, the former district merchandising director, described the workplace as recruiting unusual individuals, or “freaks and geeks,” almost like a gathering of the unconventional. As he put it, it seemed more like a club for the eccentric. Interestingly, one of their store slogans, according to Jonny, was, “if you catch someone shoplifting, let them know we’re hiring.

Michelle, previously employed as a sales associate, mentioned in the document that it’s likely she wore a shirt she may have shoplifted from American Apparel to her interview, and was informed she could begin work the following Monday.

“I felt chosen,” she admitted, “like, I must be cool.”

As a devoted follower, I proudly share that Dov Charney established American Apparel back in 1989. Known for its commitment to sweatshop-free clothing, the company’s sprawling 800,000-square-foot headquarters in downtown Los Angeles was once the nation’s largest clothing factory, according to California Apparel News. This industrial powerhouse provided employment to about 4,500 garment workers, offering wages above the minimum wage.

The individual from Montreal stated in old recordings that they manage American Apparel in a spontaneous way. They act on their gut feelings rather than carefully planning things out. Moreover, they strive to eliminate various obstacles and boundaries.

Enthralled by Dov’s relentless work ethic, I found myself stretching my nights, as E.J., a former employee, recounted in “The Cult of American Apparel”, “I seldom took breaks. If there were a standard 40-hour week, it was only due to illness…No one was clocking in that few hours.

Michelle remarked, “There was a strong sense of competition. It seemed necessary to distinguish oneself from others, lest it appear that Dov might choose someone else to perform your tasks.

In the series, Carson’s workload during a two-week period was so intense that the payroll department had to review the security footage to make sure he had indeed worked as many hours as claimed.

After spending six months at the job, Carson got promoted to store manager. However, he admitted that it continued to feel as though he had something to prove.

In the Netflix series, Jonny mentioned that getting started at the Los Angeles factory involved a “welcome package” which contained a Blackberry phone, a Leica camera, a Hitachi Magic Wand vibrator, and a copy of Robert Greene’s book The 48 Laws of Power. It was reported by several employees that Dov frequently referenced this book.

Carson said in the doc it was “definitely an open secret that Dov was sleeping with the employees.”

Dov openly acknowledged that he had romantic involvements with individuals who were his employees. In an interview with Jane magazine during the 2000s, as reported by NBC News, he stated, “I’m not saying I want to have an affair with every woman at work. But if I find myself falling in love at work, it will be both passionate and fulfilling.

During our weekly global meetings, Carson mentioned in the document that you might face the possibility of being publicly addressed by Dov.

Michelle expressed, “Every week, there was someone he’d label as ‘the fool.’ It was incredibly embarrassing when it turned out to be you, being referred to as ‘the fool of the week’ in front of so many people, even for a large corporation like ours.

The situation was both “thrilling and chilling,” Carson pointed out. E.J., a previous colleague, admitted, “I shouldn’t laugh because he’s also scolding someone I admire. Yet, in the next moment, he says something incredibly humorous. It’s such a strange mix of emotions – anger, amusement, confusion. Do I dislike him or find him amusing?

According to Carson, Dov’s approach to leadership was essentially motivating individuals to reach their limits and fostering competition among team members.

Michelle mentioned that no matter where she worked within the company, her experience was that whenever there was a bonus, promotion, or any alteration in salary, she was required to sign a mediation agreement. This document essentially stated, “Since I’ve received additional compensation, I can’t sue Dov and I can’t discuss any negative aspects of the company.” She admitted that at the time, she may have been a bit naive, but she thought, “I’m sure it will be okay, I’ll just sign.

In 2011, the company informed The New York Times that their American Apparel employees had been asked to put their names on non-disclosure and dispute resolution contracts.

In 2006, American Apparel got purchased by Endeavor Acquisitions at a whopping $382.5 million. Later on, it made its debut as a publicly-traded company on the New York Stock Exchange.

And Dov continued to open stores around the globe despite the looming financial crisis.

Following the opening of over 80 stores in 2008, as reported by the Los Angeles Business Journal in March 2009, the company announced that overall retail sales for the year had risen by 17% to reach $24.3 million compared to the previous year. However, sales from stores open for a year (same-store sales) saw a decrease of 9% in February as opposed to the same period the previous year. To add to this, three new stores were opened in February on top of the existing stores last year.

In the documentary, Michelle asserted that American Apparel seemed unaffected by the economic recession, stating “there was no recession” for the company. Archived footage shows Dov, the founder, addressing factory employees, encouraging them to hire additional merchandisers. He assured them that if their payroll became too large, he would personally shoulder the costs. Dov further emphasized how many men in past economic downturns had faced struggles but managed to persevere and even thrive.

The Netflix doc showed video of Dov strutting around in briefs.

According to NBC News, Dov stated in a recorded statement related to a 2005 sexual harassment lawsuit brought against him by a previous employee, “There’s no proof that it’s illegal to roam freely in your undergarments throughout the day in any part of the United States of America.

During the deposition, Dov admitted to frequently working at the office in his underwear. He stated, “For several months, I often wore only my underwear at work. It became quite common… At one point, we even posted a video online showing me running around in my underwear.” (However, by the time of the deposition, this video was no longer available on the company’s website.)

The representative for the company stated to Dateline, “In reality, American Apparel, with over 4,500 employees, is confronting a singular, unfounded workplace lawsuit.

Women continued to come forward with sexual harassment allegations against Dov.

Originally, there was just one woman, Toni Jaramilla stated in ‘The Cult of American Apparel’. This eventually grew to include another woman. However, upon further investigation, we discovered additional women who claimed they had similar experiences.

In other words, the lawyer clarified that previously employed women at American Apparel were bound by contracts that forfeited their right to a jury trial and prohibited them from publicly criticizing Dov or the business. As a result, these legal disputes were directed towards arbitration instead.

Following the filing of two sexual harassment lawsuits against Dov in March 2011, his attorney Peter Schey stated to the New York Times, “The accusations are untrue. I believe this is an attempt to extort American Apparel. These matters should be settled through confidential arbitration.

Previously, Dov has faced at least four lawsuits dating back to the mid-2000s, alleging he fostered a hostile or sexually inappropriate work environment. The Times was informed by the company that each of these cases were either resolved through a settlement or dropped.

In the Netflix documentary, Dov stated that the assertions made seemed deceitful. He explained that not only were the claims false, but also that those making them had been instructed to do so. Furthermore, he expressed his readiness to undergo a lie detector test.

In June 2014, Dov was temporarily dismissed from American Apparel, and by the end of the year, his employment was permanently ended.

As a devoted follower, I must share with you that while it wasn’t a decision we relished, the Board firmly believed it was the appropriate course of action. In a previous statement, I, Allan Mayer, expressed this sentiment. Dov Charney was instrumental in building American Apparel, but the Company has evolved beyond any single individual. We remain optimistic that its most prosperous days are yet to come.

In a letter acquired by the New York Times, Dov’s legal representative, Patricia L. Glaser, alleged that American Apparel was attempting to dismiss her client based on actions allegedly taken in the past (if they even occurred) – matters that the board and company have been aware of for years.

In an interview with the New York Times, Mayer acknowledged that one of the first reactions they anticipated would be, “Why did it take you so long?

He added, “We weren’t oblivious to the accusations and media reports. However, it’s not feasible to make such a significant move based solely on gossip and unproven claims.

As a connoisseur of lifestyle, I feel it’s crucial to clarify that the moniker “Sleaze King” doesn’t apply to me. There’s another fellow who goes by that title, not me. I made this statement during an interview on ABC News’ 20/20 in March 2015.

In the interview, he emphasized again that he has never participated in behaviors considered sexual harassment. He also acknowledged having romantic relationships with colleagues, but insisted these were always consensual.

He stated that all the claims made against him were baseless. We’ve addressed them, and none of them were substantiated.

In a court filing from June 2015, as reported by the Los Angeles Times, American Apparel revealed that an external law firm’s investigation into misconduct accusations discovered that the company’s former CEO had been involved in violent, disrespectful, and sexually explicit conduct towards employees.

The document indicated that videos depicting Dov involved in intimate activities were found saved on the organization’s server, and it claimed that he breached company rules forbidding harassment and retribution towards ex-employees.

As a loyal supporter, I’d rephrase it as: Keith Fink, my attorney, shared with CNBC that American Apparel has allegedly invaded my privacy in a disgraceful ploy to extract money from me and exert control over me.

Additionally, he conveyed to the Los Angeles Times in a statement that the company was “extremely keen on twisting public focus away from the illegality of Mr. Charney’s termination.

In October 2015, American Apparel sought protection under Chapter 11 bankruptcy laws. At one point, it operated over 200 retail stores worldwide, but ultimately, the company shut down all its physical storefronts.

In 2017, the brand was taken over by Gildan Activewear, a Canadian company, at a cost of $88 million. It then resumed operations exclusively on the internet.

American Apparel continues to assert that their merchandise is free from sweatshop labor during production, but they now promote their clothing as “globally sourced.” As reported by The Guardian, Gildan’s manufacturing plants are predominantly situated in regions such as Central America and the Caribbean.

Dov founded Los Angeles Apparel in 2016, and it remains in business.

In 2017, during a creative services gathering at L.A.’s Pacific Design Center, as reported by California Apparel News, he made a promise that he wouldn’t change his approach. Instead, he intends to continue managing things as he has always done, which is to let his instincts guide him and run the show impromptu based on inspiration.

Currently, at age 56, Dov is collaborating with Kanye West, also known as “Ye”, on Yeezy’s label. According to a report by Rolling Stone in July 2023, after the two were seen shopping together in Japan, Kanye has been involving Dov in his financial dealings and various business matters. However, TopMob News has yet to receive a comment from Dov following our request for one.

In his 2010 track “Gorgeous” from the album “My Beautiful Dark Twisted Fantasy,” the 48-year-old made a reference to Dov’s previous business by saying: “I require more drinks and fewer lights, along with that girl from American Apparel wearing only tights.

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2025-07-06 19:18