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Dov Charney Wants $40 Million For Unpaid Vacation Days, Office Furniture, Nights American Apparel Made Him Weep

He'd also like to be CEO again, but one thing at a time.
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As you may have heard, American Apparel was so desperate to get rid of its CEO-- and the constant barrage of sexual harassment he came with-- last year that it spent more than half its cash and then some to push him out of the company. Now, as the newly installed management struggles to class up the joint, Charney is demanding forty mill for his time and suffering, among other things.

Los Angeles lawyer Keith Fink — who, in a twist, had formerly represented American Apparel employees suing Charney for harassment — said in a letter last week that the retailer is liable for $20 million to $25 million in damages for Charney’s loss of employment. That includes Charney’s claim to 13 million American Apparel shares, nearly $6 million in severance and $1.3 million in unpaid vacation for the ex-CEO, who was a notorious workaholic, Fink said. “I still have not received Mr. Charney’s priceless art,” Fink added, referring to art and furniture left behind at the company’s offices following the abrupt dismissal last June. “While someone may be able to pencil the value of the art Mr. Charney accumulated over the years in the tens of millions of dollars, the sentimental value is priceless to him.” Among other claims Fink outlined in the March 19 letter, which was first reported by Bloomberg News, is that Charney is entitled to an additional $10 million or more in damages for “emotional distress.”

Ex-American Apparel CEO seeks $40M in damages [NYP]


American Apparel CEO: Numerous Lawsuits Against Me Are A Testament To My Awesomeness

Has the profitability of your company come into question of late? Have you been sued many, many times, typically for sexual harassment? Want to set the record straight but are unsure of what to say? Perhaps Dov Charney can help. In an interview with CNBC today, Charney told Jane Wells that any suggestion that American Apparel can't turn a profit on its mesh unitards, gold lamé leggings, and fishnet bodysuits is totally off based. "I think you're casting [the business] in the wrong light to say it's unprofitable," Charney said. "From accounting perspective, from 20 feet up, yeah, it's unprofitable. But if you get down to the numbers...we're getting our groove back." There was also this exchange. Wells: I've counted, what is it, nine lawsuits against you? That's  a lot. Charney: Yeah. It's also a testimony to my success. Wells: Do you think you're inappropriate at all? Charney: No. Wells: The range of criticism is everything from sexual predator to just...weird. Charney: Well, you know, I mean, weird? I like weird...Many of the great entrepreneurs of the last century have been criticized for being somewhat different. Wells: Do you see yourself as a Steve Jobs meets Hugh Hefner type? Charney: That wouldn't be for me to say. American Apparel CEO: Tattered But Not Torn [CNBC]