In June 2014, the Board of Directors decided to oust American Apparel founder, chairman and CEO, Dov Charney, after allegations of misconduct and inappropriate behaviour towards employees.[26][27] As interim chief executive during the search for a permanent CEO, the company’s CFO John Luttrell was appointed. As co chairmen the company appointed Allan Mayer and David Danziger.[28] Charney, through his lawyers, claimed his ousting was illegal and demanded reinstatement.[29] Soon after, Lion Capital demanded the repayment of a $10 million loan four years early. A failure to repay the loan would trigger a default on a $50 million credit line with Capital One Financial.[30].

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