American Apparel's founder made the brand — then his behavior destroyed it

American Apparel, founded by Dov Charney in 1989, built a distinctive brand around 'Made in USA' manufacturing, provocative advertising and a young, urban aesthetic. At its peak, the company had over $600 million in revenue and 250 stores worldwide, and its ads were famous for their sexualized imagery.

But Charney's personal behavior became the company's biggest liability. Multiple harassment lawsuits were filed against him, and the board investigated allegations of misconduct. In 2014, the board fired Charney as CEO. He fought the dismissal publicly and legally, creating a governance crisis that distracted from the business.

Without Charney's creative vision but still carrying his brand's baggage, American Apparel struggled. The company filed for bankruptcy in 2015 and again in 2016. Its assets were acquired by Gildan Activewear, which shut down the US manufacturing operations that had been the brand's identity. The case illustrated how a founder's personal conduct can become inseparable from the brand, and how a company built around one person's vision cannot survive that person's removal.