American Apparel executives and board members regained a measure of control this week: A bankruptcy court judge approved their plan to move forward with a reorganization strategy that transfers ownership of the company from shareholders to lenders, and in doing so, strips founder Dov Charney of any stake of the company.
Charney has been aggressively fighting to return to American Apparel since he was ousted as its chief executive
amid allegations of sexual misconduct and misuse of company money, and
the court’s move deals a serious and perhaps final blow to his efforts.
Plus, it restructures a crushing debt burden that was making it hard for
the clothing chain to do business.. . . more