Dov Charney has a little more time on his side, but the clock’s still ticking.
Delaware Court of Chancery Judge Andre Bouchard, who is presiding over a lawsuit New York hedge fund Standard General brought against Charney in the summer for breach of contract among other allegations, ruled the American Apparel ex-chief executive officer has until Nov. 30 to file a response in court.
Friday’s order stemmed from Charney’s letter to the judge earlier in the week, requesting additional time to find funding and new lawyers to represent him in court. Lawyers from the law firm Cross & Simon LLC, who were representing Charney, asked to withdraw themselves from the case last week due to “financial pressure in my camp,” Charney said in his letter.
“As you may know, I was fired by American Apparel, the company I founded in Montreal over 3 decades ago, with no severance or otherwise,” Charney wrote in his letter to the judge. “All of my shareholder interests have now been wiped out and I have depleted my savings on defending my life’s work and legal rights.”
Charney was fired from the company late last year, succeeded by current ceo Paula Schneider, in a move he alleges in court documents to have been part of a scheme by a number of players — including Standard General and some members of the board — to rid the company of him in order to sell it. Charney and those in his camp have not fallen away quietly in a drama that has largely played out in a series of legal battles that have been hurled at American Apparel, Standard General and some members of the board from Charney and former employees of the Los Angeles-based clothing company and retailer.
Charney said in his letter he would “most likely need to raise some money, which may not prove to be possible.”
If that bears out to be the case, he continued in his letter, he himself would have to read up on Standard General’s complaint.
Judge Bouchard in his order, while granting Charney more time, said “the court does not intend to further extend these deadlines.”