American Apparel Inc. Fires Charney; Names CEO

American Apparel Inc. (NYSE; APP) shares jumped in after-market action Tuesday after the company fired its controversial founder Dov Charney. Charney served as a consultant to American Apparel following his suspension in June as chief executive for alleged misconduct and violations of company policy. American Apparel shares, down 53 percent in the year to date, changed hands recently at $0.58 a share, up $0.30. The Los Angeles-based retailer and manufacturing company on Tuesday named Paula Schneider CEO effective Jan 5, replacing Scott Brubaker, who had served as interim CEO and who will continue as a consultant. Snyder has served as president or senior officer of a number of retail and apparel companies, including Warnaco, Gores Group, BCBG Max Azria, and Laundry by Shelli Segal. Following an internal investigation, a committee of American Apparel's board "determined that it would not be appropriate" for Charney to be reinstated as CEO or an officer or employee," the company said Tuesday.