FASHION LAW: FORMER AMERICAN APPAREL EXEC FILES LAWSUIT AGAINST COMPANY
Someone else has decided to file a lawsuit against American Apparel…what else is new? Just last week another former executive of the retailer filed a legal complaint against the company. Another one bites the dust!
Former president of wholesale Pat Honda filed the suit in Los Angeles Superior Court citing discrimination, breach of contract, and wrongful termination among other infractions. The retailer’s operational efficiencies and profitability have been questioned before, but now the company must also revisit their credibility.
Just last month American Apparel stated in their quarterly update that the company’s losses could continue through year-end, and “may not have sufficient liquidity necessary to sustain operations for the next 12 months.”
In her filing, Honda mentions the change in management from CEO and founder Dov Charney and the lead up of allegations that many management professionals engaged in discriminatory hiring practices. She is seeking $1 million in damages in addition to lost salary, bonuses and stock compensation.