Blog: American Apparel finds itself in hot water... Again.
Petah Marian | 5 December 2012
American Apparel has found itself in hot water on two fronts as the company reportedly faces a lawsuit which accuses CEO Dov Charney of being physically and verbally abusive and it was censured by the Advertising Standards Authority over its racy ads.
An ASA ruling found three images displaying hosiery on the retailer's website must not be displayed as it considered them inappropriate in a hosiery ad that could be viewed by children.
However, this is possibly the least of the worst of the racy retailer's woes. Michael Bumblis is reportedly suing the retailer, accusing Charney of being verbally and physically abusive to the point of rubbing dirt in his face.
Bumblis is alleging assault, battery, intentional infliction of emotional distress, violation of civil rights, discrimination and harassment based on sexual orientation and religious affiliation and wrongful termination.
According to ABCNews, Bumblis said one of Charney's earliest encounters with Bumblis was when Charney greeted him and an unnamed woman at a Las Vegas convention in February.
In April, Bumblis claims Charney called him and "launched into an expletive ridden diatribe," asking if he was "banging that girl you were with in Vegas" and berated him for having "negative same store sales."
Bumblis claims Charney said, "You should have been f***ing fired months ago," and called him slurs related to being Jewish and gay, though Bumblis says he is neither.
According to the report, during an argument about the store's new inventory system, Bumblis said Charney dove at him and grabbed his throat and began to forcibly squeeze his throat in an attempt to choke him.
During that same visit, Charney noticed dirt in a narrow space between a fitting room wall and the store wall and called to Bumblis and said: "Come here! Look how disgusting you are."
"Rub it on your face," the suit claims Charney said, he then "proceeded to scoop up the dirt and forcibly attempt to rub the dirt on plaintiff's face," the suit states.
The Los Angeles based firm is no stranger to controversy. Not only has Charney already faced several sexual harassment suits, but the retailer has also faced continued outcries over its racy advertising, and was forced to dismiss thousands of illegal workers.
The retailer has also been posting continued losses, lowering its full-year earnings outlook as it booked a US$19m net loss over the third quarter.
A special event on ‘The Fit Factor – World class wisdom on fashion sizing and fit’ will bring together speakers from Marks & Spencer, Tesco, C&A and Debenhams in the UK next week....
A tentative agreement on a new five-year contract has been agreed for some 20,000 dockworkers at 29 US West Coast ports, ending nine months of discussions. The Pacific Maritime Association (PMA) and I...
As the threat of a US West Coast port shutdown looms, analysts already estimate the ongoing disruption could add an eye-watering US$36.9bn to costs over the next 24 months. ...
Do you have any burning questions you’d like to ask a renowned global garment industry expert? For free....
- Low labour cost countries linked to highest risks
- Why should brands care about China cotton?
- China cotton: implications and opportunities
- COMMENT: Skills or new technology?
- UK reshoring hub hit by sweatshop claims
- South Africa to grow grass for recyclable textiles
- Activewear driving US apparel spend
- JC Penney share price falls on Q4 loss
- Sri Lanka and Bangladesh FTA talks underway
- Delta Galil open to M&A as profit grows
- Outdoor performance apparel: peaks, valleys, and green fields
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Global market review of swimwear - forecasts to 2019
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Apparel Retail: Top 5 Emerging Markets Industry Guide