Dov Charney

Dov Charney
Dov Charney

Dov Charney
Born Dov Charney
January 31, 1969 (1969-01-31) (age 42)
Montreal, Quebec, Canada
Occupation President and CEO of American Apparel Inc.

Dov Charney (born January 31, 1969, Montreal, Canada) is the founder and CEO of American Apparel, a clothing manufacturer, wholesaler, and retailer. Charney is known for his success as an entrepreneur, passion for simple clothing and love for Strictly Rhythm.[1][2][3] His "contrarian" leadership style, which he feels promotes creativity, has drawn extensive praise and criticism.[1][4][5] Charney has earned recognition in the media for management decisions to pay a fair wage and refusing to outsource manufacturing.[6][7] The Los Angeles Times named him as one of the Top 100 powerful people in Southern California and in 2009, he was nominated as a Time 100 finalist by Time magazine.[8][9]

Contents

Early life

Charney's father, Morris Charney, is an architect, and his mother, Sylvia Safdie, an artist.[10] Both of his parents are of Jewish descent.[11][12] He is a nephew of architect Moshe Safdie.[13] He attended Choate Rosemary Hall, a private boarding school in Connecticut[14] and St. George's School of Montreal.[15] Charney grew up with, and was influenced heavily by, the culture of Montreal.[16] He briefly attended Tufts University. As a teenager, he "fell in love" with the United States, and drew a sharp contrast between American and Canadian cultures.[17] As a teenager, Charney was an admirer of American-made products.[18] As a teen, he became disillusioned with Quebec nationalism which was widespread during the 1980s.[19] In interviews, he has stated that he considers himself to be a continuation of the trend of Canadian-Jewish entrepreneurs.[20]

At an early age Charney showed signs of an entrepreneurial and independent spirit. According to the New York Times his first venture was selling rainwater he had collected in mayonnaise jars to his neighbors.[21] In 1980, The Canadian Jewish News published a story on Charney with a headline that read "11-Year-Old Schoolboy Edits His Own Newspaper.".[22] He sold these newspapers for 20 cents a copy near his school, only to caught by a teacher and accused of panhandling and suspended from school.[21] As a child he was featured in the documentary 20th Century Chocolate Cake, in which he discussed the economics of a summer camp he attended.[23][24]

Entrepreneur

Charney's ventures were conceived in high school, when he began importing Hanes and Fruit of the Loom T-shirts across the border to Canadian friends.[25] At Choate, he claims to have shipped as many as 10,000 shirts at a time, using a rented U-Haul truck to transport the goods.[26]

In 1987, he enrolled at Tufts University. While at Tufts, he continued to operate his business, but dropped out by 1990 to pursue the apparel business full time.[27] He borrowed $10,000 from his father and moved to South Carolina to transition from importing T-shirts to manufacturing them.[28] In 1996, Charney's company restructured when it was unable to cover its debt and filed for Chapter 11.[14][29] On July 4, 1997, he went to Los Angeles.[30] By 2003, Charney had opened his first retail store and employed over 1,300 people.[31]

In 2004, he was named Ernst & Young's Entrepreneur of the Year and Apparel Magazine's Man of the Year.[32]

American Apparel

Main article: American Apparel

Building the brand

In 1991, Charney began making basic T-shirts under the American Apparel brand. The initial T-shirts were made of simple 18-single jersey and were positioned to compete with the Hanes Beefy-T.[21] The primary market objective was to sell garments to screen printers and wholesale clothiers in the United States and Canada.[33] In 1997, as his design, the 'Classic Girl', built momentum, Charney transitioned manufacturing to Los Angeles. In 2000, American Apparel moved into its current 800,000 sq ft (74,000 m2) factory located in downtown Los Angeles.[34]

Role as Manufacturer/Retailer/CEO

Charney is officially founder and CEO of American Apparel, but formerly went by the title of "Senior Partner."[11][35] He infused his personal progressive politics into the company brand paying factory workers between $13–18 USD/hr, offering low-cost, full-family healthcare for employees and taking a company position on immigration reform.[36][37][38] Workers are also allowed free international phone calls during work hours.[36] He claims to do this not for moral reasons but because it is a better business strategy.[39][40] He makes all product development and creative hiring decisions himself.[41]

Under Charney, American Apparel instituted "team manufacturing" which pools the strongest workers towards priority orders.[42] After its implementation, garment production tripled and required a less than 20% staff increase.[42] He formed the company as a domestic vertically-integrated manufacturer,[43] making him the largest manufacturer still producing garments in America.[44]

Initially American Apparel was a wholesale brand but in 2003 it expanded into the retail market. Its first stores were in Montreal, New York City and Los Angeles.[36][45] By 2005, the company had over $200M in revenue.[21] Retail operations have grown to include 260+ retail stores. In 2008, he was named Retailer of the Year at the Michael Awards, a fashion industry mainstay.[46][47] The award's previously gone to Calvin Klein and Oscar de la Renta.[48]

In December 2006, Charney entered into an agreement to sell American Apparel for $360 million to the special purpose acquisition company (SPAC) Endeavor Acquisition as a way of taking the company public.[49] As a result of the agreement, Charney was named President and Chief Executive Officer of the publicly traded company known as American Apparel, Inc. He remained the majority shareholder, and all full-time employees of American Apparel were given up to 500 shares of stock depending on length of employment.[50]

Fashion and Lifestyle

Charney is known for his passion for clothing.[51] His fashion sense is geared towards "young metropolitan adults."[52] The 'fit' of a shirt is something he often stresses.[53] He was named Man of the Year by both the Fashion Industry Guild and Apparel Magazine for his design work.[54] In 2008, The Guardian named American Apparel "Label of the Year".[55]

Charney lives in the Garbutt House, historic mansion atop a hill in Silverlake designed by Frank Garbutt, a early movie pioneer and industrialist.[21] The home is made entirely out of concrete due to Garbutt's deathly fear of fire. He is consumed with work, often sleeping in his office at the company's factory, leaving little separation between his personal and work life.[21] The house often functions as a dormitory for out of town workers doing business at the company headquarters.[21]

Advertising and brand management

Charney is directly involved in his company's design, branding, and advertising. His print campaigns are award-winning and among the most followed in the garment industry.[56] Charney has promoted a branding strategy that spotlighted his treatment of workers as a selling point for the company's merchandise, promoting American Apparel's goods as "sweatshop free." A banner on top of the downtown factory states "American Apparel is an Industrial Revolution."[44]

The company is also known for its simple and provocative ads featuring girls and employees. The subjects are often not but sometimes professional models, and often chosen personally by Charney from local hangouts and stores.[57] He shoots many of the advertisements himself.[58] His advertising has been criticized for featuring young, even teenage, models in sexually provocative poses. However, it has also been lauded for honesty and lack of airbrushing.[59][60] In 2005, Charney won the "Marketing Excellence Award" in the LA Fashion Awards.[61]

Annie Hall Billboard Lawsuit

In May 2007, American Apparel posted two billboards in New York and Los Angeles featuring a still image of actor Woody Allen from his 1977 movie Annie Hall.[62] They were removed at Allen's request within a week; he subsequently sued American Apparel on various grounds (including rights to privacy, and property rights).[62]

According to Charney, the billboard, which featured a photo of Allen as an Orthodox rabbi and "cheeky" Yiddish text ("The High Rabbi"), was a commentary on the tabloid coverage he received from several unproven sexual harassment lawsuits and the way that he and Allen—both Jews—had been treated by the media.[63][64] In an article published in The Guardian he wrote:

There are no words to express the frustration caused by these gross misperceptions, but this billboard was an attempt to at least make a joke about it.[65]

American Apparel's insurance company settled the case for U.S. $5 million (half of what Allen sought in damages)[66] on the eve of trial, the largest settlement of this type of lawsuit in New York State history.[67][68] Charney insisted that settlement was not his decision and expressed regret at being unable to defend in court what he believed to be speech protected by the First Amendment.[65]

Controversy

Charney has been the subject of several sexual harassment lawsuits.[64][69][70][71] The company and independent media outlets have publicly accused lawyers in the lawsuits against American Apparel of extortion and of "shaking the company down."[21][72][73][74] On the eve of trial in one case, the plaintiff confessed that she had not been subjected to sexual harassment and agreed to go to an arbitration hearing aimed at clearing Dov Charney's name. However, the plaintiff failed to show up to the hearing and a ruling was unable to be reached. As a result, the $1.3 million settlement was dissolved and the matter reemerged as a negative media controversy for Charney.[75][76][77] The company was later sued by four ex-models for sexual harassment, including one separately named plaintiff who sued the company for $250 million dollars.[21] The latter lawsuits were subject to much controversy when unsolicited nude photographs, consensual sexual text messages and requests for money surfaced.[72][78] Charney was accused of being responsible for these leaks in a later lawsuit.[79]

In 2004, Claudine Ko of Jane magazine[80] published an essay narrating multiple sexual exchanges that occurred between them while spending time with Charney. The article alleged that Charney consistently propositioned his employees. Charney admitted to using the word "sluts" in front of employees, in a deposition on another sexual harassment case, and denied that "slut" was a derogatory term.[59][81][82][83] The article's publication brought extensive press to the company and Charney, who later responded that he believed that the acts had been done consensually, in private and outside the article's bounds.[84][85][86][87]

References

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  2. ^ "Dov Charney: The hustler and his American dream". London: The Independent. 23 December 2006. http://www.independent.co.uk/news/people/dov-charney-the-hustler-and-his-american-dream-429627.html. Retrieved 2008-03-21. 
  3. ^ La Ferla, Ruth (November 3, 2004). "Building a Brand By Not Being a Brand". New York Times. http://www.nytimes.com/2004/11/23/fashion/23DRES.html?oref=login&8hpib. Retrieved 2008-03-21.  "I think I was born a hustler", said Mr. Charney, the fast-talking founder of American Apparel, the rapidly expanding youth-oriented T-shirt chain. "I like the hustle.
  4. ^ Hoffman, Claire (20 December 2006). "Clothier has designs on the world". Los Angeles Times. http://www.sagellc.com/index.php?page=newsroom_in_press_disp_article&id=32. Retrieved 2008-03-21. 
  5. ^ Evan, Carmichael. "Be Contrarian - Dov Charney". YoungEntrepreneur.com. http://www.youngentrepreneur.com/blog/2008/03/11/be-a-contrarian-dov-charney. Retrieved 2008-03-26. 
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  7. ^ Endevour Acquisitions Corp. SEC Proxy Statement Schedule 14A, June 5, 2007
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  9. ^ The 2009 Time 100 Finalists, Dov Charney
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  15. ^ St. George Alumni
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  17. ^ Silcoff, Mireille. [via Lexis Nexis "A real shirt-disturber: Dov Charney conquered America with his fitted T-shirts and posse of strippers."]. Saturday Post. via Lexis Nexis. Retrieved 2008-04-06.  "...when he was 15, and "had fallen in love with the U.S. in the way only a Canadian kid can -- because Americans had the freedom to choose from hundreds more kinds of sugar breakfast cereals than us."
  18. ^ Dov Charney (2007). American Apparel - Don Charney Interview (YouTube). CBS News. @3:30 "Charney has long been an admirer....'there is something about American products...'"
  19. ^ Choate Bulletin: Young Entrepreneurs "increasingly suspect of Quebec nationalism and the sovereignty movement pervading the school system."
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  23. ^ Gawker: Dov Enraged by Video of Kid Hustler Self
  24. ^ Young Dov Blackbook
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  30. ^ DovCharney.com My Name is Dov Charney
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  32. ^ Dov Charney (2004). Entrepreneur of the Year (YouTube). Ernst and Young. http://www.youtube.com/watch?v=_b-PW6Rurb0&feature=related. 
  33. ^ Fonda, Daren (October 29, 2001). "Bring It On". Time Magazine. http://www.time.com/time/magazine/article/0,9171,1001116,00.html. Retrieved 2008-03-21. 
  34. ^ "Segment of Modern Marvels: Cotton". The History Channel via AmericanApparel.net. http://www.americanapparel.net/gallery/modernmarvels/qt.html. Retrieved 2007-11-25. 
  35. ^ Charney, Dov. "Letters: American Apparel & United". The Nation. http://www.thenation.com/doc/20040920/letter. Retrieved 2008-03-26. 
  36. ^ a b c La Ferla, Ruth (November 3, 2004). 23DRES.html?oref=login&8hpib "Building a Brand By Not Being a Brand". New York Times. http://www.nytimes.com/2004/11/23/fashion 23DRES.html?oref=login&8hpib. Retrieved 2008-03-21. 
  37. ^ Palmeri, Christopher (2005-06-27). "Living on the Edge at American Apparel". Businessweek. http://businessweek.com/magazine/content/05_26/b3939108_mz017.htm. Retrieved 2008-03-22. 
  38. ^ Dov Charney (2007). American Apparel - Don Charney Interview (YouTube). CBS News. @3:50 "generous fringe benefits"
  39. ^ Walker, Rob (2004-08-01). "The Way We Live: 8/1/04: Consumed; Conscience Undercover". New York Times. http://query.nytimes.com/gst/fullpage.html?res=9500E2DB133DF932A3575BC0A9629C8B63. Retrieved 2008-03-21. 
  40. ^ Dobbs, Lou (February 9, 2004). "Kerry on the Attack; Putin Rival Disappears". CNN. http://transcripts.cnn.com/TRANSCRIPTS/0402/09/ldt.00.html. Retrieved 2008-03-26.  "A lot of people misunderstand it and think it was a moral decision. I think there is some morality to it. I mean, it is more fun to pay people well than pay people poorly. But it's also an economic one."
  41. ^ Dov Charney (2006). Charlie Rose. PBS. 
  42. ^ a b Falsh, Derek (February 1, 2007). "Keep Your Fashion in Great Shape". The Pitt News. http://media.www.pittnews.com/media/storage/paper879/news/2007/02/01/AE/Keep-Your.Fashion.In.Great.Shape-2689351.shtml. Retrieved 2008-04-28.  "His team manufacturing..."
  43. ^ Greenberg, David (May 31, 2004). "Sew what? American Apparel founder Dov Charney wants to de-emphasize the fact he doesn't use sweatshop labor; he's just trying to sell a better T-shirt - People". Los Angeles Business Journal. Archived from the original on 2008-04-01. http://web.archive.org/web/20080401023818/http://findarticles.com/p/articles/mi_m5072is_22_26/ai_118184828. Retrieved 2008-03-26. 
  44. ^ a b Dov Charney (2007). American Apparel - Don Charney Interview (YouTube). CBS News. 
  45. ^ DNR - All the Way to the Blank - Lee Bailey - March 22, 2004
  46. ^ "Dov Charney of American Apparel Named Retailer of the Year". PR News Wire. May 12, 2008. http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/05-12-2008/0004811796&EDATE=. Retrieved 2008-05-15. 
  47. ^ American Apparel CEO Named Retailer of the Year June 9, 2008. "I am privileged to accept this award in recognition of the hard work and creativity of the many people who have contributed to American Apparel's rapid growth and success".
  48. ^ Fashionista: Dov Charney, Winner "Dov Charney was recently named "Retailer of the Year" for his work as the Creative Director and entrepreneur behind American Apparel.
  49. ^ Kang, Stephanie (December 19, 2006). "American Apparel Seeks Growth Through An Unusual Deal". The Wall Street Journal. http://online.wsj.com/article/SB116648211605153768.html?mod=mm_media_marketing_hs_left. Retrieved 2008-03-21. 
  50. ^ http://www.businesswire.com/news/home/20080103005468/en/American-Apparel-Announces-Details-39-Million-Employee
  51. ^ Gladwell, Malcolm (April 24, 2000). "The Young Garmentos". The New Yorker. http://www.gladwell.com/2000/2000_04_24_a_tshirt.htm. Retrieved 2008-03-21. 
  52. ^ Jamie Wolf (2006-04-23). "And You Thought Abercrombie & Fitch Was Pushing It?". New York Times Magazine. http://www.nytimes.com/2006/04/23/magazine/23apparel.html. Retrieved 2007-11-25. 
  53. ^ "Charlie Rose: Dov Charney". Charlie Rose. 2007-07-14.
  54. ^ Olson, Debbi (December 17, 2007). "American Apparel chain makes Utah debut". The Enterprise. http://findarticles.com/p/articles/mi_qa5279/is_200712/ai_n21276925. Retrieved 2008-03-28. 
  55. ^ Vernon, Polly (30 November 2008). "American Apparel Label of the Year". London: The Guardian. http://www.guardian.co.uk/lifeandstyle/2008/nov/30/style-awards-2008-american-apparel. Retrieved 2009-02-12. 
  56. ^ Daily Update: Top Of the Charts
  57. ^ Rapoport, Adam (June 2004). "T (Shirts) and A". GQ.  "What makes American Apparel's female models so appealing is that most of them are not models. They are girls whom Charney meets at bars, restaurants, trade shows--pretty much anywhere."
  58. ^ Palmeri, Christopher (2005-06-27). "Living on the Edge at American Apparel". Businessweek. http://businessweek.com/magazine/content/05_26/b3939108_mz017.htm. Retrieved 2008-03-22.  "Charney takes many of the photos himself, often using company employees as models as well as people he finds on the street."
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  61. ^ Los Angeles Fashion Awards 2005
  62. ^ a b [1]
  63. ^ A Statement from Dov Charney Daily Update, AmericanApparel.net May 2009
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  65. ^ a b Charney, Dov (May 18, 2009). "Statement from Dov Charney, founder and CEO of American Apparel". London: The Guardian. http://www.guardian.co.uk/film/2009/may/18/american-apparel-woody-allen. Retrieved May 22, 2009. 
  66. ^ Woody Allen and American Apparel settlement
  67. ^ NY Times, CJ Hughes and Sewell Chan, May 18, 2009
  68. ^ New York Times, CJ Hughes, May 18, 2009
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  70. ^ Judge Dismisses Sexual Harassment Lawsuit against American Apparel; No Further Legal Action in the Case Will Be Allowed; Plaintiff Receives No Money.
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  73. ^ NAKED SHAKEDOWN: DOV CHARNEY IS THE VICTIM! HollywoodInterrupted.com Dec. 2008
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  75. ^ Heller, Matthew (2008-10-28). "Fashion Mogul 'Fakes' Arbitration in Harassment Case". On Point. http://www.onpointnews.com/081028.asp. Retrieved 2008-11-21. ""The 'confidential arbitration' was in fact a charade. One of Nelson's attorneys, the 2nd District said, later described it as 'a 'fake arbitration' designed to produce a press release calculated to blunt negative media attention.'"" 
  76. ^ Slater, Dan (2008-11-04). "The Story Behind American Apparel's Sham Arbitration". Wall Street Journal. http://blogs.wsj.com/law/2008/11/04/the-story-behind-american-apparels-sham-arbitration. Retrieved 2008-11-05. ""The court went on to say that 'the proposed press release is materially misleading — among other things, no real arbitration of a dispute occurred and [the] plaintiff received $1.3 million in compensation.'"" 
  77. ^ Stein, Sadie (2008-10-31). "Tangled Webs: Dov Charney's Court Case is Totally Complicated". Jezebel. http://jezebel.com/5071232/dov-charneys-court-case-is-totally-complicated. Retrieved 2008-11-04. ""In response, Ms. Nelson's lawyer, Mr. Fink, devised a settlement agreement whereby his client would agree to certain stipulations amounting to a confession that her charges of sexual harassment were bogus, and that she had never been subject to any harassment or a hostile work environment."" 
  78. ^ "Money-hungry vixen sent me dirty emails', claims American Apparel CEO being sued". The Daily Mail. 4/2011. http://www.dailymail.co.uk/news/article-1369899/American-Apparel-Dov-Charney-sex-slave-worker-money-hungry-vixen.html. Retrieved 2011-05-02. 
  79. ^ "Ex-workers say American Apparel posted nude pix online". Reuters. 4/2011. http://www.reuters.com/article/2011/04/28/us-american-apparel-idUSTRE73Q8YI20110428. Retrieved 2011-05-02. 
  80. ^ Nesvig, Kara (October 4, 2007). "Unkempt, Urban, Ubiquitous.". Minnesota Daily. Archived from the original on 2008-04-20. http://web.archive.org/web/20080420170359/http://www.mndaily.com/articles/2007/10/03/7216364. Retrieved 2008-04-28.  "now-defunct"
  81. ^ http://www.msnbc.msn.com/id/14082498/
  82. ^ http://www.jewishjournal.com/thegodblog/item/jewish_hustler_potty_mouth_and_pervert_means_no_offense_20080603/
  83. ^ Claudine Ko, "Meet Your New Boss," Jane Magazine, June/July, 2004 http://www.claudineko.com/storiesamericanapparel.html
  84. ^ "The company calls it "a social situation which...unfortunately was exploited in order to sell magazines." American Apparel CEO Trial Starts Today CNBC. Margaret Brennan. February 28, 2008.
  85. ^ "I've never done anything sexual that wasn't consensual", Charney says. The reporter, Claudine Ko, confirmed his take on events to BusinessWeek." Living on the Edge at American Apparel
  86. ^ "Within the context of a flirtatious conversation about sexuality and the pleasure Charney derives from masturbation with a willing partner, he decided to demonstrate for Ko, and it became a repeated motif in their later encounters. The article left a lasting impression of him as a boss who can't keep it in his pants", The New York Times "And You Thought Abercrombie and Fitch Was Pushing It"
  87. ^ "I was a younger man" he says, wearily. "The lines were blurred between paramour and reporter." The reporter has said that her tape recorder or notebook was in full view at all times and that the relationship was professional." Portfolio profile of Charney

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  • Dov Charney — (né le 31 janvier 1969 à Montréal, Canada) est le créateur et le Directeur général de American Apparel ( AA ), marque de vêtements. Biographie Homme d affaires canadien. Né à Montréal dans une famille juive, Dov Charney abandonne ses études pour… …   Wikipédia en Français

  • Charney — may refer to: Places Charney Bassett Charney Road railway station in Mumbai People Ann Charney (b. 1940) Polish Canadian novelist April Charney American consumer advocate Charles de Lauzon de Charney, Governor of New France (1656 1657) Dennis… …   Wikipedia

  • DOV — or Dov could refer to: DOV Pharmaceutical Dover (Amtrak station), New Hampshire, United States; Amtrak station code DOV. Dover Corporation, because of its stock exchange symbol DOV German Eastern Marches Society; German: Deutscher Ostmarkenverein …   Wikipedia

  • DOV (disambiguation) — DOV or Dov could refer to:* DOV Pharmaceutical * Dover (Amtrak station), New Hampshire, United States; Amtrak station code DOV. * Dover Corporation, because of its stock exchange symbol DOV * German Eastern Marches Society; de. Deutscher… …   Wikipedia

  • American Apparel — Infobox Company company name = American Apparel, Inc. company company type = Public (amex|APP) foundation = Los Angeles, California location = Los Angeles, California key people = Dov Charney, President and CEO Marty Bailey, President of… …   Wikipedia

  • American Apparel — American Apparel, Inc. Rechtsform Corporation ISIN US0238501003 Sitz Los Angeles, Vere …   Deutsch Wikipedia

  • Vertical integration — In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies are united through a hierarchy and share a common owner. Usually each member of the hierarchy produces a… …   Wikipedia

  • Legalize LA — is an activist campaign promoting immigration reform, propagated through billboards, protests, clothing, advertisements, educational pamphlets, and grass roots support, underwritten by American Apparel.… …   Wikipedia

  • American Apparel — Logo de American Apparel Création 1998 Personnages clés Dov Charney (fondateur et PDG) …   Wikipédia en Français

  • Choate Rosemary Hall — Fidelitas et Integritas Fidelity and Integrity Location Wallingford, Connecticut, 06492 …   Wikipedia

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