American Apparel’s fired CEO takes control of 43%
The plot thickens...
The man who's name has been all over the media after he was fired from his own company for misconduct last month, has now bought 27.4 million shares of American Apparel for $19.6 million last week. According to a regulatory filing today, "Mr. Charney was obligated to purchase such shares of common stock and is deemed to be the beneficial owner of such shares." The arrangement calls for Standard to lend Charney the money to buy the stake.
However, the board at American Apparel are not prepared to see him return without a fight, and set up a stockholder rights plan over the weekend to prevent Charney from regaining control of the company. Even going as far as to note that he wouldn't be deemed beneficial owner of the shares Standard General bought by virtue of the letter alone.
This would obviously leave the former CEO, president and chairman in a rather sticky situation – he's clearly obliged to buy the shares from Standard, yet potentially unable to complete the deal.
Despite this, Charney appears to be dead set on regaining control – calling for a special meeting of shareholders in September to increase the size of the board and make other changes.
And the board? Well they are continuing with their investigations into Charney, who has been sued repeatedly for sexual harassment and is said to have approved large severance payments to employees to shield himself from personal liability.