Retail Refugees

Trouble in Retail Land: American Apparel
December 2, 2008, 11:13 am
Filed under: Uncategorized | Tags: , , ,

That American Apparel CEO and Founder, Dov Charney, has had a history of legal issues is nothing new.  However, the latest developments in his current sexual harrasment case are incredible.  Though they may make nice t-shirts and are popular with with hipster set, something tells me that if Charney does not settle down soon, his rapidly expanding company will start to encounter some serious issues in terms of HR and public perception.

Taken from Racked:

While American Apparel continues to take over every remaining storefront in Manhattan, its CEO, Dov Charney, is busy fighting an increasingly complicated lawsuit. The Mary Nelson story was already painfully convoluted, but we’ll summarize: Nelson, a former AA employee, sued for sexual harassment. American Apparel agreed to settle for $1.3 million if she’d allow them to send out a press release announcing that arbitration had “found” Charney not guilty. Perhaps unsurprisingly, the scam fell apart, the news hit the media, and everyone came out looking slimy.

Now, it’s all gotten even slimier. The blog Hollywood, Interrupted has dug up legal documents accusing Mary Nelson’s lawyer, Keith Fink, of helping her fake a reduced income so that she could claim getting fired from AA forced her to take a low-paying job. They’ve also got an e-mail allegedly from Fink to AA’s lawyer threatening to “blow this whole farce wide open” if he doesn’t get paid soon. Writes blogger Mark Ebner, “There is little doubt that Fink blackmailed American Apparel.”



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