Like a Sleazy Phoenix, American Apparel’s Dov Charney Rises From the Ashes
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Back in June, it appeared that American Apparel founder Dov Charney had finally—finally!—met his downfall. The t-shirt king, who is notorious for his sleazy behavior and sexually explicit advertising, basically screwed himself with a combination of bad business and continued sexual harassment of his employees. On June 18, the board of directors issued a statement announcing the removal of Charney as CEO, explaining that the decision “grew out of an ongoing investigation into alleged misconduct.”
Charney immediately mounted a defense, rallying his legal team and striking a deal with New York hedge fund Standard General. Now, he’s officially back in the business. The Los Angeles Times reported Wednesday that Standard General, which owns a 44 per cent stake in the company, “will bring in a cash infusion of up to $25 million,” thus saving American Apparel from “potential financial ruin.”
Charney and four other board members will step down, but Charney will continue to work as a “strategic consultant” while being investigated for sexual misconduct. According to the LA Times, “a committee of board members will determine whether he can serve as ‘CEO or an officer or employee of American Apparel'” once the investigation is complete.
The good news? “Standard General is upholding American Apparel’s commitment to making its products in America. The investment firm will not support shifting even a percentage of U.S. manufacturing to low-cost countries overseas, according to a person familiar with the negotiations.”
Sounds like the employees jobs are secure for now. But are they safe from Charney’s skeezy wandering hands? Time will tell.