Another former American Apparel executive has stepped up to lodge a legal complaint against the company.
The latest lawsuit, filed Wednesday in Los Angeles Superior Court, comes from former president of wholesale Pat Honda and alleges discrimination, breach of contract and wrongful termination among other complaints.
It’s another hit from a former high-ranking executive as uncertainty looms over the troubled company‘s ability to continue operating.
American Apparel warned last month in its most recent quarterly update that its losses could continue through this year and “may not have sufficient liquidity necessary to sustain operations for the next 12 months.”
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Court documents from Honda’s lawsuit mention the management change from ousted chief executive officer and founder Dov Charney to current company head Paula Schneider in the lead-up to allegations that some members of the management team engaged in discriminatory hiring practices.
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Honda’s employment at the company, which totaled more than a decade, was severed in July for what she said in the complaint was retaliation from American Apparel management for her inquiries into alleged unpaid wages and bonuses.
Honda is seeking some $1 million in damages along with lost salary, bonuses and stock compensation. She’s also seeking punitive damages and attorneys’ fees.
Honda’s lawsuit is just one in a string of legal complaints filed by former employees against the company. Four former employees filed separate lawsuits last month alleging wrongful termination and breach of contract. The complaints included one from Iris Alonzo, the creative director who was dismissed from the company in February.
At the same time, many workers have rallied around Charney, calling for his return while also attempting to unionize. Rallies have been held outside of some American Apparel stores and headquarters, including a more recent gathering involving a piñata in Schneider’s likeness.
The company, which declined to comment on the latest lawsuit through a spokesperson, in the past has called the legal complaints “meritless” and “public relations opportunities.”