Dov Charney fights back – Borrows $20 Million to buy more AA stock.
If you’ve checked out SD lately, you know we’ve been following the Dov Charney vs. American Apparel situation very closely. If you haven’t heard, tensions between AA and their founder Dov Charney reached a boiling point a couple weeks ago which resulted in the brand firing their scandalous creator.
In an act of defiance, it seems that on late Monday Mr. Charney boosted his stake in American Apparel by acquiring a total of 43% of the company’s stock.
What’s even more interesting is the fact that although he has been fired for supposed sexual wrongdoing, and was accused of “failing to prevent a defamatory blog post concerning a former employee and signed off on significant severance payments for former employees to shield himself from liability” – he still claims that he has done nothing wrong and is fighting his termination seeking between $23 and $25 million for wrongful dismissal.
Charney has taken a big step toward his goal of retaking control of the company, borrowing nearly $20 million from Standard General to buy 27.4 million shares of the retailer.
We will definitely keep you posted with on going developments.