The action never ceases at American Apparel Inc.

Shares of American Apparel shot up 44.9 percent to close at $1.00 following the ouster of founder Dov Charney.

Charney was fired by the board as the company’s chief executive officer on Wednesday. The board named Paula Schneider as the new ceo, starting Jan. 5.

Forget smooth sailing ahead for the retailer, however. Still outstanding is the arbitration proceeding Charney started when he was removed from office earlier this year.

Now there are media reports that some company managers have sent a letter to the board asking it to reconsider its decision to fire Charney. Co-chairman Allan Mayer declined comment. Further, there’s speculation that a buyout might be a possibility.

Charney still holds a 44 percent stake in the company, although that stake is actually controlled by New York-based hedge fund Standard General.

As part of Standard General’s deal with American Apparel, the company’s board was reconstituted. Standard General has named two individuals to the retailer’s board.  Lion Capital, which hold warrants that allow it to acquire up to 24.5 million shares of the company, has the right to name two board members. It has already named one person, Robert Minz, to the American Apparel board.

There’s speculation that Charney might still try to regain control of the company he founded, and could find a sympathetic ear with one of the hedge funds. If that happens, there could be a hedge fund battle down the road.

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