Dive Brief:
-
American Apparel founder and ex-CEO Dov Charney Tuesday filed another lawsuit against the company, this time alleging that the retailer itself is guilty of defamation to the tune of $20 million, minimum. The suit names American Apparel as well as chairman Colleen Brown.
-
Last week Charney sued shareholder and major player, investment firm Standard General, also for defamation, for $30 million in damages.
-
American Apparel said Wednesday it will "vigorously dispute" Charney's claims.
Dive Insight:
When American Apparel says that Charney and his supporters are filing suits at a “breakneck pace,” it appears that Charney and his supporters would only agree.
Amid reports that the retailer has a “dossier” of complaints against Charney, it’s worth noting that for years the company dispensed with accusations of his alleged wrong-doing through court settlements and outright denials. The situation has turned into a tit-for-tat, with the company saying that workers accuse Charney, and other workers publicly supporting him.
One former worker, Raf Akopyan, a former photo assistant at American Apparel, reached out to Retail Dive to say that several workers are rallying behind Charney, staging protests and developing a website, because the retailer has been unfair to them under its new management. He says that his own interactions with current executives have led him to believe Charney's stipulations that his ouster was a "coup" of sorts. Akopyan, who says he hasn't been in touch with Charney for two years, said that he has sent Standard General a letter regarding his concerns.
Certainly, whatever Charney’s personal conduct or his approach to marketing, he has been an adamant advocate for keeping his apparel made in the U.S. by workers who are paid decently and treated fairly. That, says a source familiar with Charney’s lawsuit, is the real motivation behind the company’s actions last year, forcing Charney out, and now.