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Will Dov Charney finally have his revenge on American Apparel?

February 3, 2016Written by George Anderson

Dov Charney selfie with factory employee (Source: Dov Charney’s flickr page)

[avatar user="geoanderson" size="100" /] A bankruptcy court judge's recent approval of American Apparel's reorganization plan over a $300 million bid by another group of investors led by Dov Charney does not appear to be the end of the fight between the retailer and its founder and former CEO. According to reports, Mr. Charney and the same investors that backed him in his attempt to retake American Apparel are creating a new, rival company. The new company will produce a line of clothing basics, such as underwear and t-shirts manufactured in the U.S. à la American Apparel. It will initially focus on being a wholesaler, with a "robust e-commerce system," but not simply be an e-tail operation. Chad Hagan, managing partner and group president of Hagan Capital Group, told Women's Wear Daily, "We don’t want to just start with some funny, online brand." He said his firm and fellow investor Silver Creek Capital Partners fully support Mr. Charney, whom he described as a "colorful CEO." Mr. Charney's critics typically refer to him using terms such as "creepy". He was fired for cause from his job as CEO of American Apparel in 2014 for a variety of alleged infractions, including the misuse of company funds, releasing naked photos of a former employee who was suing him, as well as ongoing inappropriate, if not illegal, behavior with female workers. Mr. Charney, it has been alleged, danced around the company's office in his underwear on at least one occasion.

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