American Apparel shares rise after sacking of CEO Dov Charney

The dissmissal of Dov Charney from the board of American Apparel might have been bad news for the man himself, but it has only meant good news for the business he started. WWD report that after just over an hour of trading on Wall Street, the company’s stock was up 6.7 per cent to 68 cents, giving it a market capitalisation of $118.5 million.

Over the past three months an average of daily 2.8 million shares changed hands, but today this figure stood at 7.3 million.

Controversial Charney was ousted from the company by its board on June 18 after an ongoing investigation into “alleged misconduct”.

The Canadian’s behaviour has repeatedly made headlines through the years; allegations of misconduct and sexual harassment towards employees have been rife.

American Apparel’s newly-appointed co-chairman, Allan Mayer, explained how “a board can’t make decisions on the basis of rumors and stories in newspapers” in regards to why the sacking has only come about now.

“This is not easy, but we felt the need to do what we did for the sake of the company,” said Mayer. Read more..