Clothing brand American Apparel apparently spent millions of dollars trying to investigate and consequently fire its fonder. The company reportedly spend an astounding $10.4 million investigating the founder, a number that is especially high since the company only had roughly $8.3 million on hand at the end of 2014.
In a statement this week, the company said that it spend $10.4 million on the internal investigation that led to Charney’s firing, and another $7 million on employment settlements and severance payments.
Charney was officially fired from American Apparel in December, however the company was trying to get him to step down from his leadership role as early as June when he was first served a termination paper. Brad Reifler (Bradcreifler.com) has learned that the reasons they wanted him to leave the company were many, and ranged from him allegedly misusing company funds as well as violating the company’s sexual harassment policies. American Apparel has had a long history of “provocative” advertising and company correspondence. The new CEO of the company that replaced Charney is looking to tone that image down a bit and make the company more friendly and inclusive to people of all types.