Dov Charney’s tabloid-ready life has always had plenty of sex.
Now it has a boardroom brawl. And it’s still just beginning to heat up in the wake of his ouster last week as chairman, president and chief executive officer of American Apparel Inc.
A filing with the Securities and Exchange Commission Monday detailing Charney’s position said his termination was “without merit” and that he “intends to contest it vigorously.” He is working with Los Angeles law firm Glaser Weil Fink Jacobs Howard Avchen & Shapiro.
After Charney was sidelined — he was technically suspended for 30 days to await termination — he was approached by “certain people, including stock holders…who expressed support for his continued leadership” of the company, according to the filing.
Charney’s been holding discussions with these people about “potential changes to the composition of the board and management of [American Apparel].”
The filing said he also plans to engage with American Apparel’s board on “matters related to governance and board composition, management, operations, business, assets, capitalization, financial condition, strategic plans and the future of the [company].”
In essence, the fight is on and Charney — who owns 27.2 percent of the company, or 47.2 million shares — appears to be attempting to round up a posse to back him up.
Charney’s long been known for his free-loving ways, living with young employees in his L.A. mansion and speaking openly about sex. He’s also been sued repeatedly for sexual harassment, and his handling of a settlement tied to one of the suits is said to have contributed to his firing. He is also said to have had a part in posting online naked pictures of an American Apparel employee who sued him.
Charney’s departure made for a flurry of salacious headlines, stories recounting his escapades and alleged abuses and a video of him dancing naked.
American Apparel, no doubt prepared for the publicity, is rounding up its own team for the fight.
The company said it hired well-known fashion investment bank Peter J. Solomon Co. as financial adviser.
“The hiring of a financial and strategic adviser at this important juncture is in the best interest of our stockholders and will help maximize long-term shareholder value,” said John Luttrell, interim ceo and chief financial officer. “Although the company currently is on track to meet its previously disclosed 2014 EBITDA [earnings before interest, taxes, depreciation and amortization], we are pleased to be working with Peter J. Solomon to ensure that we have adequate access to capital in the future at a reasonable cost.”
While talk of maximizing shareholder value is usually a veiled effort to put out the for-sale sign on a company, American Apparel’s cochairman Allan Mayer told Reuters, “We are certainly not looking to sell the company. If someone came and said they want to buy American Apparel for $10 per share, we’d be crazy to not listen…but by no means [are we] looking to sell now.”
The company’s stock traded as high as 73 cents Monday, but closed down 2.5 percent to 67 cents, leaving it with a market capitalization of $116.6 million.
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)
How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion
“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion