Skip to main content

Dov Charney, the, uh, let’s say eccentric founder and former CEO of former t-shirt maker American Apparel, was once fond of reminding the company that it was imbued with his DNA. And that DNA sequence apparently includes instructions for filing for bankruptcy.

Charney was forced into bankruptcy court because he owed $30 million to a hedge fund involved with American Apparel, which shut down all of its outlets and became an online retailer after going through two of its own bankruptcies.

“They’ve been pressuring him,” Charney’s attorney, William N. Lobel, said Friday. “It looks like the best way to handle it at this point is with a bankruptcy.”

As we imagine they would, given that the courts have routinely for years ordered Charney to repay Standard General the money it lent him during his ill-fated attempt to retake control of his company, to no avail. And we also imagine that a bankruptcy would be the best way to handle things, and not just at this point, for Charney has for nearly a decade cried poverty, in spite of the evidence to the contrary—specifically, multi-million dollar houses that he wasn’t using and a series of new ventures started. So presumably this filing shows that Charney hasn’t got even two nickels to rub together for warmth, right?

Charney listed assets and debts of as much as $50 million each.

Dov Charney, Founder of American Apparel, Files for Bankruptcy [Bloomberg]

For more of the latest in litigation, regulation, deals and financial services trends, sign up for Finance Docket, a partnership between Breaking Media publications Above the Law and Dealbreaker.



Voices In Dov Charney’s Head Cannot Execute Valid Verbal Contract

Dov Charney himself can, and did, execute some valid paper contracts that he’s gonna have to live up to, though.


Neiman Marcus Does Not Think Hedge Fund Manager Has Suffered Enough

Jail is not sufficient. $60 million and subordinated claims might be.


PG&E Burns Paul Singer Again, And Good

If only they were as good at delivering power and keeping their utility lines from becoming giant lighters as they are at running legal circles around a hedge fund.

By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons

Ex-Hedge Fund Manager Better Hope The Next Judge He Sees Doesn’t Think He’s A Thief And A Liar

Because that judge will be the one fulfilling his prophecy about going to jail.