Jun 23, 2014
Ousted chairman Charney seeks change in American Apparel board
Jun 23, 2014
American Apparel founder Dov Charney, who was fired as the maverick retailer's chairman last week, said he wants to talk to the company to shake up its board.
Charney, who is the largest shareholder in the company with a 27.2 percent stake, said in a regulatory filing he had been approached by "certain persons" who expressed support for his continued leadership.
Charney said his supporters include stockholders.
A source told Reuters that independent directors of the company have rejected a demand to meet and reinstate Charney on Monday.
American Apparel's board ousted Charney as chairman and suspended him as president and chief executive officer on June 18. The board cited Charney's alleged misuse of company funds and role in disseminating nude photos of an ex-employee who had sued him.
Charney's lawyer has already sent a letter to American Apparel threatening legal action should 45-year-old Charney not regain his executive positions.
The ouster takes effect on July 18.
American Apparel shares closed at 68 cents on the American Stock Exchange on Friday. The Los Angeles-based retailer's shares have fallen 65 percent in the last 12 months.
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