American Apparel Dismisses CEO Dov Charney for Misconduct

American Apparel Inc. replaced Chief Executive Officer Dov Charney, who has faced accusations of sexual harassment, after an investigation into unspecified misconduct at the casual clothing maker he founded.

The board named Chief Financial Officer John Luttrell, a former executive with retailers Old Navy Inc., Wet Seal Inc. and Cost Plus Inc., as its interim CEO, according to a statement yesterday. Charney was suspended and will be terminated for cause after a contractual 30-day waiting period, Los Angeles-based American Apparel said.