Not long ago, he was the biggest shareholder, worth tens of millions of dollars. Soon, he’s likely to have nothing.
American Apparel / Via americanapparel.net
Five years ago, Dov Charney was worth almost $70 million and ran one the country's hottest businesses as its largest shareholder. Today, his shares in American Apparel have been wiped out, he's banned any role at the company and he owes millions to the hedge fund that now controls the business he founded.
And if the company's bankruptcy plan is approved, its new owners will be essentially banned from transferring shares to Charney, his family members or anyone else affiliated with him.
The bankruptcy filing is "a huge step forward for American Apparel," CEO Paula Schneider said in a letter to employees, comparing it to previous bankruptcies at Bloomingdale's, American Airlines and Marvel Comics. "The process begins a new day at American Apparel and lays the foundation for a hopeful future."
Here's what it took to get to this "huge step forward."
Charney was served with a surprise termination letter in June 2014, alleging he misused corporate assets, violated sexual harassment policies and more.
Bloomberg / Via Bloomberg
How Dov Charney Will Lose Everything In American Apparel's Bankruptcy http://ift.tt/1Q5asi0
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