Dov Charney transformed American Apparel from a small wholesale outfit into a global clothing brand. Known for his edgy styles and U.S.-based production, he earned a bold reputation in the fashion world. However, over time, former employees accused him of behaviour that deeply harmed workers, the company, and even himself.
This dramatic rise and fall is explored in Trainwreck: Cult of American Apparel, now streaming on Netflix. The documentary focuses on Charney’s leadership and the misconduct allegations that led to his downfall. According to the film, these issues triggered a sharp decline in his career.
In December 2014, American Apparel’s board removed Charney and appointed Paula Schneider as CEO. They claimed he violated sexual harassment and anti-discrimination rules, in addition to misusing company resources. As a result, his time with the company ended in scandal.
Still, Charney remained active in the fashion industry. Interestingly, American Apparel also continued to operate under new leadership.
Despite the fallout, he did not step away quietly. In May 2015, Charney filed a defamation lawsuit against American Apparel’s parent firm, Standard General. He alleged that the hedge fund staged a “coup d’etat” and carried out a “sham investigation” to justify removing him. He sought $30 million in damages for the harm caused.
Just a month later, he filed another lawsuit claiming fraud and conspiracy by executives and Standard General. This time, he demanded $100 million and asked for the return of his forfeited company shares. The legal battles intensified rapidly.
To counter his lawsuits, American Apparel submitted court documents outlining his alleged misconduct. According to The Los Angeles Times, the company accused him of using racial slurs, including calling employees “Filipino pigs.” Moreover, they said he sent sexually explicit messages and stored sex videos on work devices.
Although Charney’s attorneys denied all allegations, the company maintained they had solid grounds for his termination. Notably, no court has found him guilty of sexual harassment. In 2011, five former employees filed lawsuits—three were dismissed by a judge, while the remaining two entered arbitration.
Meanwhile, American Apparel went through bankruptcy proceedings in 2015 and 2016. Throughout this time, Charney continued to press legal claims. Even today, his story sparks debate across the fashion world.
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