American Apparel chief Dov Charney is back... but it's not what you think

Controversial founder set to return as 'consultant' while the investigation into alleged misconduct continues

Embattled American Apparel chief founder Dov Charney vowed “to fight like hell” to get his company back. And he has, well, kind of.

But don't expect the 45-year old to make a grand entrance as "the boss", instead, Charney will serve as consultant for the company until the investigation into allegations of misconduct against him is completed.

"Based on the findings of the investigation, the committee will determine if it is appropriate for Charney to serve as CEO or an officer or employee of American Apparel," the company said in a statement.

Under the new deal, Standard General, which effectively controls 43 per cent of the company's shares through an arrangement it reached last month with Charney, will provide up to $25 million in financial support for the struggling company, which has seen sales decline in recent years.

The announcement comes as a surprise after retailer's board of directors unanimously voted to remove him to from his duties as chief executive citing an internal investigation into alleged misconduct last month.

 

At the time, the board argued his behaviour not only damaged the company's reputation, but also posed a financial risk following a series of high-profile lawsuits, including allegations of sexual harassment against Charney, that were either settled or dismissed.

In recent weeks, the controversial businessman had moved to regain control of the company he founded, pooling his 23 per cent stake with Standard Chartered as he tried to win shareholder support in the boardroom battle.

Under the deal with American Apparel the pair will not raise their joint 43 per cent holding any further for now.

The retailer, which prides itself on made in America label, admitted this week that the London-based private equity firm Lion Capital had formally demanded the repayment of a $10m loan because it had fired Charney as CEO, a move that trigger demands for the repayment of a further $230m debt.

News
people
Sport
Newcastle players celebrate, Mario Balotelli scores, Alan Pardew and Brendan Rodgers
footballNewcastle vs Liverpool , Arsenal vs Burnley, Chelsea vs QPR and Everton vs Swansea
News
i100Amazing Amazon review bomb
Arts and Entertainment
The Spice Girls' feminism consisted of shouting 'girl power' and doing peace signs in latex catsuits
musicWhat is it? You know what you want it to be...
PROMOTED VIDEO
News
people
Life and Style
food + drinkFrom Mediterranean Tomato Tart to Raw Caramel Peanut Pie
News
Moss and Grimshaw arrive at the party
peopleKate Moss, Claudia Schiffer and Nick Grimshaw at Jonathan Ross's Halloween party
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Armstrong, left, and Bain's writing credits include Peep Show, Fresh Meat, and The Old Guys
TVThe pair have presented their view of 21st-century foibles in shows such as Peep Show and Fresh Meat
News
i100
Extras
Boys to men: there’s nothing wrong with traditional ‘manly’ things, until masculinity is used to exclude people
indybest13 best grooming essentials
Travel
travelPurrrfect jet comes to Europe
Arts and Entertainment
Benedict Cumberbatch attends the London premiere of his new film The Imitation Game
people He's not as smart as his characters
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

The benefits of Recruitment at SThree...

£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...

Trainee Recruitment Consultants

£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...

Finance Assistant - Part time - 9 month FTC

£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...

Marketing Manager

£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...

Day In a Page

Bryan Adams' heartstopping images of wounded British soldiers to go on show at Somerset House

Bryan Adams' images of wounded soldiers

Taken over the course of four years, Adams' portraits are an astonishing document of the aftermath of war
The drugs revolution starts now as MPs agree its high time for change

The drugs revolution starts now as MPs agree its high time for change

Commons debate highlights growing cross-party consensus on softening UK drugs legislation, unchanged for 43 years
The camera is turned on tabloid editors in Richard Peppiatt's 'One Rogue Reporter'

Gotcha! The camera is turned on tabloid editors

Hugh Grant says Richard Peppiatt's 'One Rogue Reporter' documentary will highlight issues raised by Leveson
Fall of the Berlin Wall: It was thanks to Mikhail Gorbachev that this symbol of division fell

Fall of the Berlin Wall

It was thanks to Gorbachev that this symbol of division fell
Halloween 2014: What makes Ouija boards, demon dolls, and evil clowns so frightening?

What makes ouija boards and demon dolls scary?

Ouija boards, demon dolls, evil children and clowns are all classic tropes of horror, and this year’s Halloween releases feature them all. What makes them so frightening, decade after decade?
A safari in modern Britain: Rose Rouse reveals how her four-year tour of Harlesden taught her as much about the UK as it did about NW10

Rose Rouse's safari in modern Britain

Rouse decided to walk and talk with as many different people as possible in her neighbourhood of Harlesden and her experiences have been published in a new book
Welcome to my world of no smell and odd tastes: How a bike accident left one woman living with unwanted food mash-ups

'My world of no smell and odd tastes'

A head injury from a bicycle accident had the surprising effect of robbing Nell Frizzell of two of her senses

Matt Parker is proud of his square roots

The "stand-up mathematician" is using comedy nights to preach maths to big audiences
Paul Scholes column: Beating Manchester City is vital part of life at Manchester United. This is first major test for Luke Shaw, Angel Di Maria and Radamel Falcao – it’s not a game to lose

Paul Scholes column

Beating City is vital part of life at United. This is first major test for Shaw, Di Maria and Falcao – it’s not a game to lose
Frank Warren: Call me an old git, but I just can't see that there's a place for women’s boxing

Frank Warren column

Call me an old git, but I just can't see that there's a place for women’s boxing
Adrian Heath interview: Former Everton striker prepares his Orlando City side for the MLS - and having Kaka in the dressing room

Adrian Heath's American dream...

Former Everton striker prepares his Orlando City side for the MLS - and having Kaka in the dressing room
Simon Hart: Manchester City will rise again but they need to change their attitude

Manchester City will rise again but they need to change their attitude

Manuel Pellegrini’s side are too good to fail and derby allows them to start again, says Simon Hart
Isis in Syria: A general reveals the lack of communication with the US - and his country's awkward relationship with their allies-by-default

A Syrian general speaks

A senior officer of Bashar al-Assad’s regime talks to Robert Fisk about his army’s brutal struggle with Isis, in a dirty war whose challenges include widespread atrocities