Charney, fully clothed, at work. (Twitter/@DailyMailUS)

Charney was also suspended from the chairman and chief executive positions and has been the target of several sexual harassment lawsuits, according to the New York Times. One former employee alleged Charney tried to force her to perform oral sex, and in a federal probe, the company was found to be employing 1,800 illegal immigrants. His other antics include showing up to a meeting wearing nothing but a sock and posing with two models for an ad with the caption "in bed with the boss."

In a statement, the clothing company said its board voted to fire Charney. 

“We take no joy in this, but the board felt that it was the right thing to do,” Director Mr. Mayer said. “Dov Charney created American Apparel, but the company has grown much larger than any one individual, and we are confident that its greatest days are still ahead.”

The news of Charney's firing comes after a long period of financial decline for the retail company, though Forbes reports American Apparel's stock has surged more than 19 percent since the announcement.

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