The controversial CEO of American Apparel, Dov Charney, has been let go by the company’s board of directors because of allegations of “misconduct.”
The sudden departure of the company’s founder, who held many key roles, illustrates the importance of CEO succession planning. Boards, and even the general counsel, need to plan and prepare for CEO exits, InsideCounselhas reported, because such a situation can take place at any time. InsideCounsel’s Erin E. Harrison has reported that, “Succession planning in the C-suite is the single most important decision facing boards of directors today.”
The company’s statement was positive in terms of the future of the company – despite some skepticism found in news reports.
“We have one of the best known and most relevant brands in the world, with employees who are second to none; I believe we have a very exciting future,” Luttrell said. “Our core business—designing, manufacturing, and selling American-made branded apparel—is strong and continues to demonstrate great potential for growth, both in the U.S. and abroad. This new chapter in the American Apparel story will be the most exciting one yet.”