Call it an olive branch: American Apparel has re-hired ousted CEO Dov Charney, but not in his original capacity.
The founder, who was removed by the organization's board last month for cause amid a flurry of scandals, has been brought on as a consultant. The news comes within the 30-day waiting period between his initial suspension and his full termination from the company.
"Mr. Charney will serve as strategic consultant until the end of the investigation," the company said in a statement, according to ABC News. "Based on the findings of the investigation, the committee will determine if it is appropriate for Mr. Charney to serve as CEO or an officer or employee of American Apparel."
In addition to Charney's probationary consultant status, "five of the seven board members, including Charney, will voluntarily step down," ABC News reported. Charney also can't increase his shares in the company from his current 43 percent stake, which he acquired with the help of the investment firm Standard General. Under the terms of that deal, Charney cannot make any voting decisions without Standard General's approval.
Among the litany of accusations filed against Charney: potentially misused company funds, leaking lewd photographs of a former employee and a sizable number of sexual harassment claims (many of which went nowhere in court).
Charney and his attorneys had accused American Apparel of "illegally firing him," according to ABC News' report. The agreement that would bring Charney back to the fold was announced Wednesday, exactly three weeks after his firing was announced.
This article is from the archive of our partner The Wire.
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