American Apparel’s Ousted Founder Loses Court Bid To Return
Charney hoped to convince Judge Brendan Shannon his two hedge fund partners should buy out the struggling retailer, a plan that included putting Charney back in charge.
But the judge signed off on American Apparel's lender-backed plan that will cut $200M in the company’s debt, the New York Times reports.
The decision gives American Apparel an early exit from bankruptcy and a chance to turn the company around under the leadership of CEO Paula Schneider.
Schneider’s plan focuses on the retailer’s online platform and bringing some structure to what she calls a chaotic company. [NYT]