The battle for American Apparel Inc. might be just about to boil over.While most of the recent action has come from ousted founder Dov Charney’s rush to add to his stake — late Monday he revealed he had boosted his stake; he now controls 43 percent of the company’s stock — additional details might come out of the investigation that led to his firing.Someone familiar with the situation said the probe is ongoing and that indications are the results will be “of interest to everyone involved.” Those results are expected in “a matter of weeks and maybe even a matter of days,” the source told WWD.Law firm Jones Day and FTI Consulting have been helping the board examine Charney’s colorful tenure as American Apparel’s chief executive officer. When he was fired two weeks ago, the board said he failed to prevent defamatory blog posts concerning a former employee and signed off on significant severance payments for former employees to shield himself from liability.But that just begins to touch on the characteristics that built his reputation.Charney crafted the company’s racy marketing and is well known for his sexually charged lifestyle. He has been repeatedly sued for sexual harassment, but the allegations were settled or dismissed. Throughout it all, he has denied wrongdoing and is fighting his termination in arbitration and is said to be seeking $23 million to $25 million for wrongful dismissal. Charney is widely seen as a very talented marketer, but also as someone perhaps too close to the company he founded.“He’s a micromanager of monster proportions,” a financial source familiar with the company said. “Dov is not a quitter. He’s going to fight. He’s obviously heavily invested in this business. He sees it as his, which is part of the problem. Once you have a public company…the rules sort of change and I don’t think he ever got with that program.”Charney has taken a big step toward his goal of retaking control of the company, borrowing nearly $20 million from Standard General to buy 27.4 million shares of the retailer. The move boosted his stake to 43 percent from 27.2 percent. But he can’t add more than another 1 percent without triggering American Apparel’s poison pill and diluting his stake. Charney plans to file a consent statement with regulators to rally other shareholders to his cause, setting up something akin to a proxy fight with the board. He has also called for a special meeting of shareholders to rejigger the board in September, but the company’s sought to block the meeting.If the board’s investigation does turn up anything damaging on Charney, that could become fodder in the struggle for control of the company.
La Double J made a name for itself with its vintage-inspired prints, but for resort, designer JJ Martin has ventured into new territory: enter rich jewel toned solids and decadent embellishment, in the form of appliqués, crystals and sequins. #wwdfashion #resort19 #ladoublej
This Just In: J. Crew Group has named Johanna Uurasjarvi as its chief design officer.
Uurasjarvi succeeds Somsack Sikhounmuong, who left the company last September. Tap the link in bio for the full report. #wwdnews
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@virgilabloh revealed he's working with Australian stylist and
Vogue Australia fashion director @christinecentenera for his debut @louisvuitton men's collection, which will be presented in Paris on June 21. Centenera met Abloh while both working with Kanye West, where she consulted on his all his runway collections since his debut spring 2012 women's wear show. Read the full story on WWD.com. #wwdfashion #wwdnews (📷: @asussmanphoto)
"In order for Shudu to wear garments, she needs to be able to put them on, just like you would in the real world. You have to digitize the outfits," said Cameron-James Wilson on dressing 3-D model @shudu.gram for her WWD photoshoot with @itsclo3d. #wwdfashion (📸: @cjw.photo)
“Shudu is a digital supermodel, a very glamour and amazing woman. But she’s 3-D,” says Cameron-James Wilson, a fashion photographer and the creature of @shudu.gram. Here, Shudu wears @cushnieetochs for her debut fashion editorial. #wwdfashion (📷: @cjw.photo)
“It is the fierce female performances that came before me that made be able to clearly identify for myself what it was that I wanted to do, what kind of artist I wanted to be, what kind of films I wanted to make,” said @brielarson at the Women in Film Crystal + Lucy Awards. See more pictures from the event on WWD.com. #wwdeye (📷: Matt Baron)