Guess Who Was Rehired As American Apparel's “Strategic Consultant”

6409918_LG_1VA_ADPhoto: Courtesy of American Apparel.
Well, well — look who came crawling back to Dov Charney like the model pictured here wearing the disco short and the mid-length tie-up blouse. Less than a month after American Apparel's board of directors suspended president and CEO Charney, with plans to completely dissolve their working relationship following a 30-day “cure period,” the board decided to rehire him as a “strategic consultant until the end of the investigation” into his alleged misconduct.
Advertisement
The company’s statement, provided to ABC News, continues, “based on the findings of the investigation, the committee will determine if it is appropriate for Mr. Charney to serve as CEO or an officer or employee of American Apparel.” Charney initially owned 27.2% of the company’s shares and borrowed $20 million from New York hedge fund Standard General to bump his stake to nearly 44%, a move that more or less forced the board’s hand. As part of the newly reached agreement, the two parties cannot buy “any additional shares in American Apparel, and [it] limits their vote to no more than one third of the company’s shares on any issue put to stockholders.” Also, five of the seven board members, including Charney, will resign.
Bloomberg Businessweek’s latest issue stars the “Sleaze King” and elaborates on the investigation, conducted by advisory firm FTI Consulting. Once completed — it could be as soon as early August — Standard General hopes to install a fresh board comprised of “experienced retailers and turnaround and corporate-governance experts” to define Charney’s role, or lack thereof. “They control the shares. I’m a bystander,” Charney explained. “My first issue is to save people’s jobs, put the company into a stable financial situation. And then we’ll evaluate whether or not I’ll be the janitor or the CEO or the consultant.” As a testament to his work ethic, Bloomberg Businessweek shares, “One time, Charney took a deep interest in the lighting in the stores and studied bulb temperature and the Kelvin light scale.” So our pick, since he suggested it, would be janitor.
Advertisement

More from Celebs & Influencers

The Balmain show feels less like a runway spectacle and more like a private Kardashian-Jenner shopping trip that fellow show-goers (and everyone ...
For the latest drop of Ivy Park, Beyoncé's activewear line launched in April, the superstar has gifted us with a video in which she's equal parts dream ...
The Kardashian-Jenners have all been known to catalyze sales, whether or not they're hyping their own brands. But in case you had any doubts about Kylie ...
"You can be whoever you want to be." If you grew up in an atmosphere of gold stars and participation trophies, you probably heard this on loop. You, little...
Though bloggers may have a reputation for sharing almost every aspect of their lives — from #OOTDs to dinner pics (hey, we're guilty of this, too) — rarely...
Don't worry — Kate Middleton just can't seem to let go of her favorite boots either. The Duchess wore a pair of Penelope Chilvers long tassel boots in ...
Let's say you're Beyoncé. Let's say your daughter is Blue Ivy. Let's say you have to, for whatever reason, attend a football game. Let's say you have a ...
(Paid Content) Snap, filter, post, repeat. In today's social-media-saturated landscape, sharing photos online is as ubiquitous as brushing one's teeth or ...
If you're suffering from a case of the Mondays, Alessandro Michele has a cure. It involves an editorialized gathering of a few of our favorite things: ...
The cast of Stranger Things is continuing its world tour of stealing your heart. First, Millie Bobby Brown took over the front row of New York Fashion ...
With close to 4 million followers on Instagram, Aimee Song (a.k.a. Song of Style) knows how to take a pretty decent photo. The Los Angeles-based interior ...
Last year, the lingerie line Frederick's of Hollywood closed all its stores after going bankrupt. But now, it's making a resurgence with a little help ...
On September 20, 2016, our faith in love was tested by the sound of Brangelina's earth-shattering divorce. If we're being honest, we've yet to recover. But...
Kendall, we need to talk. And I think you know why. Your latest Vogue spread — which, need I remind you, is your fifth this year — is...problematic. Here...