Dov Charney Inks Deal to Increase Stake in American Apparel

Ousted founder plans to borrow money from Standard General for purchase.

Dov Charney is doubling down.

The founder of American Apparel Inc. — who was  ousted as president, chief executive officer and chairman last week — plans to borrow to buy more shares in the company.

The former executive inked a deal with Standard General, which plans to buy up at least 10 percent of the company’s stock and then loan Charney the money to buy that stake, according to a filing with the Securities and Exchange Commission.

Shares of American Apparel shot up in the final minutes of trading today, ending up 29.8 percent to 97 cents.

Charney already owns 47.2 million shares of the company giving him a 27.2 percent stake.