American Apparel's Dov Charney is out for good

Why we fired American Apparel CEO
Why we fired American Apparel CEO

Dov Charney is finally out the door at American Apparel.

The controversial CEO was fired in June, but stayed on as a consultant and kept his base salary -- until now.

Paula Schneider will take the helm on Jan. 5. She has served as a senior executive at a number of retail companies, including Warnaco, BCBG Max Azria, and Laundry by Shelli Segal.

"We're pleased that what we set out to do last spring - namely, to ensure that American Apparel had the right leadership - has been accomplished," said Allan Mayer, co-chairman of the board.

Charney was fired for alleged misconduct. He faces a series of sexual harassment suits filed by employees in recent years and reportedly conducted some interviews and company meetings in his underwear.

Related: The worst stocks of 2014

American Apparel (APP) shares jumped on the news. The stock was up as much as 12% Wednesday, but still down nearly 50% this year.

The company is based in Los Angeles, and is known for its "Made in U.S.A." T-shirts and other basic clothing.

A spokesman would not disclose any information about Schneider's salary at this time.

Investing

CNNMoney Sponsors