The good news: Charney, who up until fairly recently was (allegedly!) "trespassing on company property and threatening employees who did not support his return* by taking their photos and promising to fire them" once he came back, hasn't been sued for sexual harassment lately! For a guy who once masturbated "eight or so times" in the presence of a reporter profiling him for a story and danced nude in front of his employees, that's really something. The less good news: American Apparel's decision to file for Chapter 11 bankruptcy is not great for Charney in the fiscal sense.
American Apparel said it expected to cut its debt to $135 million from $300 million through the elimination of more than $200 million of bonds in exchange for equity. The big loser will be founder Dov Charney, who was fired as CEO in December for alleged misconduct, including misusing company funds and failing to stop a subordinate from creating blog posts that defamed former employees. Charney, who has filed several lawsuits against American Apparel, had for years before his ouster faced highly publicized lawsuits accusing him of sexual harassment. Along with other shareholders, his stake will be wiped out, said Neil Saunders, chief executive of research firm Conlumino.
*As in the one he was planning in his mind.