American Apparel shares rose on Thursday after the company’s decision to suspend Dov Charney as chairman and chief executive pending his ouster.
The board voted on Wednesday to suspend Charney immediately and remove him from his post after a 30-day waiting period. The decision “grew out of an ongoing investigation into alleged misconduct,” board member Allan Mayer said in a statement.
The company appointed chief financial officer John Luttrell as interim chief executive. Mayer and David Danziger will become co-chairmen.
Charney could not be reached for comment, but is expected to fight to keep control of the company.
American Apparel shares rose 7 percent to 68 cents in Thursday trading on the New York Stock Exchange.