Last month, American Apparel attempted to remove CEO Dov Charney from the company because of sexual harassment claims. However, he isn’t going out easy as last week Charney moved to increase his stake in the company from 27% to 43%, meaning he will have the controlling stake in the company and will be able to influence the board of directors who were looking to have him removed.
Well played, Charney, well played.
A committee of independent directors are said to be appointed to oversee Charney’s case of ‘alleged misconduct’ to see if he can be formally reinstated into the company. He won’t be CEO, but he’ll still hold a lot of power.
Is this more proof that you can do what you like as long as you have enough money to make up for it?