American Apparel is still struggling to cut ties with its founder and former CEO, Dov Charney. The Los Angeles-based clothing company announced today that a court has granted a temporary restraining order prohibiting Charney from disparaging American Apparel or from doing anything to instigate the removal of any of its board members.
Charney was fired in June 2014, accused of sexually harassing female employees and misusing company funds. Ensuing legal battles between Charney, American Apparel and Standard General, the hedge fund that controls the company, have become a sideshow in an ongoing saga, even as the retailer’s sales slump more with each passing quarter.
Charney sued Standard General in May 2015; a week later, American Apparel counter-sued Charney. The ousted CEO has been seeking millions of dollars in damages and maneuvering to get his job back—as part of those efforts, American Apparel alleges, Charney trespassed on company property, threatened employees, and generally “engaged in an ongoing subversion of the company’s rebuilding efforts.”