Ousted American Apparel founder and Chief Executive Officer Dov Charney is working with "supporters" to potentially change out the company's board and management, according to a regulatory filing today.
After the board's surprise announcement that it would terminate Charney following a 30-day cure period, the former chairman said he "was approached by certain persons" including shareholders "who expressed support for his continued leadership," according to the the filing.
It continues: "On June 19, 2014, Mr. Charney began to discuss with the supporters potential changes to the composition of the board and management of" American Apparel. Charney also "intendeds to engage in discussions" with American Apparel's board, management, and other stakeholders "that may relate to the aforementioned matters and/or other matters related to governance and board composition, management, operations, business, assets, capitalization, financial condition, strategic plans and the future of" American Apparel.
The filing doesn't specify who these shareholders or supporters might be. It might be a tough battle though — Bloomberg News reported over the weekend that FiveT Capital, American Apparel's largest outside shareholder, doesn't currently plan to support the 45-year-old in his effort to get his job back. American Apparel said today that it hired Peter J. Solomon Co. as a financial and strategic adviser "to ensure that we have adequate access to capital in the future at a reasonable cost."
BuzzFeed exclusively published Charney's termination letter yesterday.
Sapna Maheshwari is a business reporter for BuzzFeed News and is based in New York. Maheshwari reports on retail and e-commerce.
Contact Sapna Maheshwari at firstname.lastname@example.org.
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