Last month Dov Charney was suspended from his position as president, chief executive officer and chairman of American Apparel for alleged misconduct. However it appears that the ousted CEO maybe regaining some influence over the company.
Charney’s shares in the company have recently increased from 27.2 percent to 43 per cent following an agreement between Charney and Standard General. The investment firm purchased 27.4 million shares of the company for $19.6 million, but was compelled to lend the money to Charney to buy the stocks, due to a letter agreement.
WWD has reported that “Mr Charney was obligated to purchase such shares of common stock and is deemed to be the beneficial owner of such shares.” American Apparel appears unwilling to accept the return of Charney and set up a stockholders rights plan to prevent Charney from regaining power. It has been specifically noted that Charney will not be the beneficial owner of the shares bought by Standard General through the letter alone.
It seems Charney has come one step closer to regaining control of the company but American Apparel will not see him return without putting up a fight.