American Apparel Inc. stock rose 17 percent Wednesday on the news that Dov Charney has been fired – for good – and will be replaced by veteran fashion executive Paula Schneider next month.

The founder and former chief executive of the downtown Los Angeles apparel manufacturer was officially fired Tuesday after an internal investigation found he violated the terms of his employment agreement.

Charney had been suspended from the company in June, amid allegations that ranged from violating American Apparel’s sexual harassment policies to purchasing travel for family members with company money. But Charney continued to work as a consultant for the firm, pending an investigation into the accusations against him. With the investigation complete, American Apparel’s board said Tuesday that Charney would not be reinstated.

Shares of American Apparel rose 10 cents, or 17 percent, on Wednesday to close at 68 cents.