By Daniel Hunter

American Apparel has confirmed that its founder Dov Charney has been fired, after being suspended in June.

Charney was suspended following allegations of sexual misconduct, but he still served as a consultant to the company.

Paula Schneider has been appointed as the fashion brand's new chief executive.

Canadian-born Charney founded the company in 1998 and built its "Made in America" brand.

Earlier in the year, American Apparel came in for huge criticism over its advertisements which were described as 'on the verge of pornographic'.

It added to the reputation problems caused by a series of lawsuits made against the Charney over inappropriate sexual conduct with female employees.

He has always maintained that the relationships were consensual, but the board decided to suspend the founder as its shares continued to fall.

The board said “it would not be appropriate for Mr Charney to be reinstated as CEO or an officer or employee”.

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