American Apparel Company and its directors have been named in a lawsuit in which the company’s founder and chief executive is being sued for $250 million. According to regulatory documents, Dov Charney owns more than half of the company. The 42-year-old Charney is accused of sexual harrassment, gender discrimination, creating a hostile workplace and retaliation in a lawsuit filed in a New York state court last week. He has been charged similarly in a number of other filings.

Irene Morales brings the suit as a result of employment by American Apparel in 2007 when she was 17. She accuses Charney of sexual abuse over an eight month period during which time she was forced to perform sex acts with Charney. Morales alleges that she was held prisoner in his apartment and threatened with job loss before ultimately quitting the company and receiving paychiatric treatment.

American Apparel’s ability to remain in business is in question plagued with unpaid debt and failing sales. Charney and company spokespeople did not respond to repeated requests for comment.