One of America's most controversial clothing brands is making a comeback, but ditching some of its signature traits.

American Apparel is facing a defamation lawsuit filed by Dov Charney, the Montreal-born entrepreneur who founded the retail chain.

The board of American Apparel voted to oust founder Canadian Dov Charney as chairman and notified him of its intent to remove him as president and chief executive, the clothing chain said in a statement Wednesday night.