Dov Charney’s legacy is intertwined with the rise and fall of American Apparel, a brand once celebrated for its bold advertising and vertically integrated business model. Yet, as the company grew, so did the controversies surrounding its founder. The main issue that plagued Charney and the brand was a series of sexual misconduct allegations that repeatedly called his leadership into question. This article delves into what happened to Dov Charney, the cascade of legal challenges he faced, and how this affected the brand.
Stacks of Allegations
Allegations of sexual misconduct against Dov Charney continued to accumulate, casting a long shadow over American Apparel. As employee and civil rights attorney Toni Jaramilla noted in The Cult of American Apparel, the revelations began with one woman’s accusation, which soon led to more women coming forward. “Initially it was one woman,” Jaramilla explained, “that led to a second. But in doing our due diligence, we found other women who were claiming they experienced the same thing.”
Many women who worked at American Apparel faced obstacles in voicing their claims. Former employees had signed agreements that included waivers of their rights to a jury trial and forbade public criticism of Charney or the company. This often relegated their cases to arbitration, shielding them from public scrutiny.
Persistent Legal Battles
In March 2011, two sexual harassment lawsuits were filed against Charney. His attorney, Peter Schey, insisted to the New York Times that “the allegations are false,” suggesting a financial motive behind the claims. “I think this is an effort to shake down American Apparel. These claims should be resolved in confidential arbitration,” Schey stated.
Since the mid-2000s, Charney had faced multiple lawsuits for fostering a hostile or sexually charged work environment. According to the Times, American Apparel claimed these cases were either settled or dismissed. However, the cumulative legal controversies took their toll, tarnishing the brand’s image.
Charney’s Denial and Defense
Charney consistently denied the allegations against him. In archival footage featured in a Netflix documentary, Charney described the claims as disingenuous. “First of all, they’re fake. Second of all, these claimants are being coached,” he asserted, expressing his willingness to take a polygraph test to prove his innocence.
The persistent controversies and legal challenges surrounding Charney significantly impacted American Apparel, contributing to the brand’s eventual decline. The once-revered figure in the fashion industry found himself grappling with allegations that would overshadow his business achievements.
