THE CONFLICT between American Apparel and its controversial founder intensified yesterday, as it was revealed in a US regulatory filing that Dov Charney had increased his stake to 43 per cent of the company.
Charney – fighting to reclaim the positions from which he was recently ousted – now holds 74.56m shares, representing a 27 per cent stake in the company.
Last week, Charney signed an agreement with US hedge fund Standard General, in which it stated it would acquire more than 10 per cent of American Apparel shares, and then lend Charney the money to buy back the shares to boost his own stake.
American Apparel responded by instituting a “poison pill” stockholder rights plan which sought to prevent any hostile takeover attempts. The firm removed Charney from his position as chairman and CEO on 18 June, over alleged cases of sexual misconduct, claims he has denied.