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American Apparel Controversy: Dov Charney

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American Apparel Controversy
After eight years of nurturing his idea to make T-shirts in America, Canadian-born Dov Charney founded American Apparel – “Made in USA” T-shirt – Sweatshop Free factory as a wholesale business followed by his moved to Los Angeles in 1997. At the beginning, Charney’s business intention was to focus on supplying American-made T-shirts to screen printers; yet, emerging labels was a profitable strategic business decision. In 2003, American Apparel opened its first retail store. As a visionary thinker, Charney disrupted the fashion industry with his strategies and racy marketing ideas. Two years after they entered the retail market, they opened 50 more stores, hired over 4,500 employees, and generated $250 million in …show more content…

He was accused of sending attractive employees vibrators as gifts and wearing only his underpants during meetings or at job interviews. Nine lawsuits that were filed against Charney had either settled out of court or was dismissed. Additionally, American Apparel’s Arbitration clauses prevented its employees from discussing company affairs publicly. Nevertheless, Charney was not proven guilty from any lawsuits brought by his former employees. Besides Charney’s scandals, American Apparel has also been accused of racially profiling African American women with written instructions from upper management. Moreover, American Apparel only hired workers based on the way they look, after taking full body pictures of them. Not surprisingly, Charney was also involved in these hiring process. In 2008, Oscar winning director Woody Allen sued American Apparel for displaying unauthorized image of his movie Annie Hall on American Apparel billboards in New York and Los Angeles. The case was settled for $5 million, half of the initial amount requested, in 2009 before trial. All billboards related to Annie Hall were removed within a week after their

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