6-19-14 6:32 PM EDT | Email Article

By MarketWatch

American Apparel (APP) founder Dov Charney was ousted as CEO overnight by his management board, following a bumpy spell for the Los Angeles--based clothing manufacturer and retailer. Charney is not the first founder to be kicked out of the company he started. Steve Jobs was famously shown the door by Apple back in 1985, following a dispute about strategy that pitted him against the very CEO he himself had hired away from PepsiCo (PEP)

Here are just some of the many founders who have been ejected from the companies they helped create, along with what they are doing now, what happened to their creations, and how their shares have performed since they left.

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Dov Charney

American Apparel (APP) founder Dov Charney was suspended as CEO late Wednesday, according to a brief news release. The company's management board said it's firing him for cause, citing an "ongoing investigation into alleged misconduct," without providing any further detail. Charney, described by the Wall Street Journal as sometimes to be seen "wandering around his factory in his underpants," has also been the subject of sexual-harassment lawsuits.

What is he doing now?

Charney has not yet revealed his plans and reportedly hung up on a reporter who called to ask. "He's going to fight like hell to get this company back, but he won't succeed," an unidentified source told the Los Angeles Times.

What happened to the company?

By ousting Charney, American Apparel may have triggered a default event in its credit agreement, though the company said it would hold talks with lenders to waive the default. The company is working with a search firm to seek a replacement, and said it's been promised an impressive list of candidates.

How have the shares performed since his ouster?

American Apparel shares jumped as much as 22% on Thursday as the news broke, but have erased most of the gains since then. They were recently trading up 5% at 67 cents a share. The debt-ridden company has posted losses and bled cash for some time, and its shares are far below their 2007 peak of close to $16 a share.

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George Zimmer

George Zimmer, founder of Men's Wearhouse (MW) was ousted one year ago as executive chairman due to a disagreement with the board of directors over the direction of the company. He had stepped down as CEO in 2011 and was transitioning to a more limited role in the company, but remained in the public eye, with his trademark catchphrase, "You're going to like the way you look. I guarantee it."

What is he doing now?

Zimmer has kept out of the spotlight -- and the news. Zimmer owned 1.79 million shares of Men's Wearhouse, or 3.7% of outstanding stock, as of April 30, the same amount as when he was fired, according to FactSet.

What happened to the company?

Men's Wearhouse has continued to plow ahead without its key spokesman, and made a successful bid for smaller rival Jos A. Bank Clothiers Inc., which closed this week.

How have the shares performed since his ouster?

Men's Wearhouse shares are up 50% since Zimmer's departure

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Andrew Mason

Groupon Inc. (GRPN) fired its chief executive and founder, Andrew Mason, in February 2013, a day after reporting a quarterly loss that was wider than expected, which raised questions about the viability of the company's business model. Mason released a memorable memo to employees that was promptly leaked to the press:

"After 4 1/2 intense and wonderful years as CEO of Groupon, I've decided that I'd like to spend more time with my family. Just kidding -- I was fired today."

What is he doing now?

Not much. In July 2013, he released a seven-song album of "motivational business music" entitled "Hardly Workin." According to the New York Daily News, it was meant to inspire young workers. (It is available for listening on Spotify, or to buy on iTunes. )

What happened to the company?

Strong revenue growth has remained elusive for Groupon. The company entered acquisition mode recently, notably purchasing flash-fashion retailer Ideeli and LivingSocial's South Korea--based Ticket Monster business earlier this year.

How have the company's shares performed since his ouster?

While the company has recovered somewhat from its late-2012 lows of around $2.60 a share, it has yet to regain a price that is anywhere near its IPO price of $28. Its shares remain down nearly 50% from its January 2014 price.

-MarketWatch; 415-439-6400; AskNewswires@dowjones.com

David Neeleman

David Neeleman, founder of discount airline JetBlue (JBLU), was ousted as CEO on May 10, 2007, three months after the carrier canceled 1,700 flights and stranded 130,00 passengers during a winter storm on the east coast. The fiasco cost the airline about $22 million, capping two consecutive years of losses.

What is he doing now?

Neeleman is currently CEO of Azul Brazilian Airlines, which he founded in 2008.

What happened to the company?

JetBlue, like most U.S. airlines, struggled during the 2008-2009 financial crisis, but has since prospered and expanded as a discount carrier.

How have the shares performed since his ouster?

Shares initially rose on Neeleman's departure, but were hit hard by the recession. While they've since recovered, they're still trading about 25 cents a share below where they were when Neeleman left.

-MarketWatch; 415-439-6400; AskNewswires@dowjones.com

Steve Jobs

Steve Jobs co-founded Apple (AAPL) in 1976 and was ousted in 1985 after a boardroom showdown with CEO John Scully over the direction of the company and pricing of the Macintosh computer. He returned to Apple as interim CEO in 1997.

Jobs died of pancreatic cancer on Oct. 5, 2011

What happened to the company?

In the 12 year Jobs was away, Apple had some successes [The PowerBook laptop] and some notable failures [The Newton PDA]. Apple lost market share and became a niche company that nearly went out of business until Jobs returned. His comeback heralded the age of the iPod, the iPhone and the iPad, which have helped build Apple into a juggernaut with a market cap of more than $555 billion.

How have the shares performed since his ouster?

Adjusted for stock splits, Apple's shares were trading at 27 cents on the day Jobs was stripped of power in 1985. When he resigned as CEO for health reasons on Aug. 24, 2011, Apple was trading at $51.37 a share. The shares were last quoted at $91.77.

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Noah Glass

Noah Glass, who is credited with coming up with the name Twitter (TWTR) and was deeply involved in the social-media giant's early development, was fired in 2006 by fellow co-founder Evan Williams. Jack Dorsey, another co-founder and currently Twitter's chairman, also apparently wanted him booted from the company.

What is he doing now?

Keeping a low profile. His Twitter bio simply says, "i started this."

What has happened to the company?

Twitter went public on Nov. 7, 2013, about seven years after Glass was removed. The social-media company has undergone a few high-profile management changes in its history, and is not currently led by any of its co-founders.

What have the shares done since his ouster?

Twitter shares have tumbled 39% this year and were lately quoted at $38.75, up 49% from their IPO price of $26.

-MarketWatch; 415-439-6400; AskNewswires@dowjones.com

Jerry Yang

Yahoo (YHOO) announced Nov. 17, 2008, that co-founder Jerry Yang would step down as CEO as soon as the company found a replacement. The resignation came after months of stinging criticism of the executive and co-founder for spurning a $45 billion offer by Microsoft (MSFT) to buy the company. The final blow came when Google walked away from an ad-revenue-sharing plan.

What is he doing now?

Alibaba, which is preparing one of the largest IPOs in history, announced this month that Yang will be returning to its board, where he had served from 2005 to 2012. Yang has also served as an angel investor.

What happened the company after he left?

There was turmoil in the C-suite after Yang's departure. He was replaced by Carol Bartz who was soon replaced by Scott Thompson. Yahoo has been helmed since July 2012 by Marissa Mayer.

How have the shares performed since his ouster?

Yahoo shares jumped nearly 9% the day after Yang's removal. His departure effectively put a floor under the long-suffering stock, though shares largely traded sideways until they began a rally in late 2012. They were last quoted at $34.65.

-MarketWatch; 415-439-6400; AskNewswires@dowjones.com

Martin Eberhard

Martin Eberhard was forced out as Tesla's (TSLA) CEO in late 2007, and he has since been engaged in a legal battle with CEO Elon Musk, with each accusing the other of taking too much credit for getting the electric-car company off the ground. Eberhard has also argued that Musk unfairly blamed him for delays in the launch of Tesla's Roadster.

What is he doing now?

Earlier this year, the University of Illinois graduate was honored with a Distinguished Alumni Award. The university said Eberhard had worked on electric vehicles for Volkswagen, then departed the German company to again pursue his "entrepreneurial interests."

What happened to the company?

Tesla went public on June 29, 2010, about 2 1/2 years after Eberhard was ousted. The company has since become a popular momentum stock and Musk appears regularly on TV and print promoting the company and his many projects.

How have the shares performed since his ouster?

Tesla is trading at around $230, nearly 14 times its IPO price of $17 a share.

-MarketWatch; 415-439-6400; AskNewswires@dowjones.com

Mike Lazaridis and Jim Balsillie

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06-19-14 1832ET

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