He won’t be on the board anymore, and there’s no guarantee that the hedge fund he gave his shares to will let him be CEO again. But it’s all part of his grand plan to be allowed to shop at his stores again.
The deal, completed Wednesday, will provide the company with $25 million, some of which will be used to pay off a loan that has been called in by Lion Capital, another investment firm. As part of the deal, all but two of American Apparel's seven-member board will be replaced.
Mr. Charney will serve as a strategic consultant until an investigation into his conduct is completed.