American Apparel's former CEO, Dov Charney, lost his bid in court to regain control of the company, leaving the retailer free to leave bankruptcy next week.
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]
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