American Apparel founder Dov Charney grabs back stakes
Ousted Dov Charney ups stake via New York hedge fund Standard General
Tuesday 01 July 2014
Dov Charney, the ousted boss of American Apparel, has raised his stake in the fashion retailer from 23 per cent to 43 per cent as he fights to regain control of the company he founded.
His move, through a deal he reached with the New York hedge fund Standard General, came as American Apparel’s board put in place a “poison pill” defence that in effect blocks large investors from increasing their stakes.
Legal experts said the future of American Apparel could now depend on whether the board moved quickly enough to put their poison pill defence in place before his share deal was sealed.
Standard General notified Mr Charney it had bought the stock it is selling him on the same day that the board announced its defensive “rights plan” poison pill.
“This is a legal issue now – it’s no longer business,” Harvard Business School professor Robert Kaplan said. “Mr Charney moved quickly… they may have waited too long to put the pill in.”
American Apparel’s board replaced Mr Charney as chairman and said it would fire him “with cause” as chief executive last month due to an “ongoing investigation into alleged misconduct”. He has faced several lawsuits in recent years alleging sexual misconduct, which he has always denied.
American Apparel was sticking to its guns, saying its poison pill stockholder rights plan will last for one year.
“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,” American Apparel said.
“The rights plan is not intended to prevent or deter takeover bids that offer fair treatment and value to all stockholders.”
Mr Charney also called for a shareholders’ meeting for 25 September to call for changes to the board. The company has so far refused to engage with Mr Charney.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Tennis fan suing Australian Open organisers for 'failing to shade spectators' during Murray match
- 5 Syrian refugee child beaten by Istanbul Burger King manager for eating customer’s leftover food
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Rob Lowe hits out at White House decision not to meet Israeli leader
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Winston Churchill: From accusations of anti-Semitism to the blunt refusal that led to the deaths of millions
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...