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At a Wednesday hearing, American Apparel ex-CEO Dov Charney attempted to persuade a judge that hedge funds Hagan Capital and Silver Creek’s $300M takeover bid is the right move for American Apparel.
The two hedge funds’ plan includes Charney’s reinstatement as CEO to turn the retailer around from its recent financial woes, Retail Dive reports.
As part of the effort to revive the flagging business, American Apparel announced a number of US stores closings, the first of which happened in December in LA. (The 5.3k SF store is already available on Loopnet.)
Since being ousted from the chief exec position, Charney has tried to wrest back control but claims he has been stymied by an impossible board.
Current CEO Paula Schneider says the board’s decision to reject the takeover had nothing to do with Charney, adding that she’s had to fix serious managerial issues since she replaced him. [RD]
