NEW YORK, Dec. 16 (UPI) -- After months of back-and-forth between American Apparel and maligned CEO Dov Charney, the clothier announced it is completely severing ties with its founder.
The clothing company removed Charney from its board of trustees and indicated it planned to fire the CEO in June after he was accused of sexual harassment.
Charney continued on with American Apparel as a consultant while the company investigated claims he imprisoned a former employee in his home as a sex slave.
But even that relationship is over now, American Apparel announced Tuesday.
"Based on this investigation, the special committee determined that it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee of the company," a press release from the company said.
American Apparel announced Paula Schneider would permanently take over as the new CEO.
"This company needs a permanent CEO who can bring stability and strong leadership in this time of transition, and we believe Ms. Schneider fits the bill perfectly," said David Danziger, co-chairman of the board.
"American Apparel has a unique and incredible story, and it's exciting to become part of such an iconic brand," Schneider said. "My goal is to make American Apparel a better company, while staying true to its core values of quality and creativity and preserving its sweatshop-free, Made in USA manufacturing philosophy."
