Dov Charney and American Apparel: Still Fighting

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Photo: Johannes Kroemer/Getty Images

Here's one nuance that has escaped many people following this American Apparel mess: Despite having been ousted as CEO, Dov Charney still owns 27.2 percent of the company. And according to Businessweek, he just revealed in an SEC filing that he has plans to increase his stake. A company called Standard General has been acquiring additional shares of American Apparel and lending the disgraced CEO money to buy them (at a steep interest rate of 10 percent, of course). The amount of stock Standard General has bought on Charney's behalf is still unclear, but it's definitely worrying the American Apparel brass. On Saturday, AA's board instituted what's known as a "poison-pill defense," adopting a yearlong shareholders' rights plan. In a statement, the brand explained, “The rights plan is designed to limit the ability of any person or group, including Dov Charney, to seize control of the company without appropriately compensating all American Apparel stockholders." Sigh. Can't we all just get along?