Dov Charney, the American Apparel founder who was ousted as chief executive officer last week, accused the board of acting illegally when it moved to fire him for cause.

A letter sent by Mr Charney’s lawyer demands that he be reinstated as chief executive and chairman and calls for a meeting no later than today. The move signals American Apparel won’t have a smooth transition as the retailer looks for a new leader and tries to fix its finances.

The showdown follows an investigation into the conduct of Mr Charney, who has faced sexual-harassment lawsuits over the years and drawn controversy for provocative advertisements. – (Bloomberg)