For the better part of a decade, American Apparel founder and former boss of the year Dov Charney has proclaimed himself to be on his last dime. Broke despite the 20-room Los Angeles mansion, down to his last $100,000, and ultimately stymied in his effort to get his old job back, it seems he could or should have filed for bankruptcy at any point in the last eight years. In fact, he only did so last month. If you think that timing’s a bit strange, coming as it does so soon after his former benefactors at hedge fund Standard General moved once again to get back all the money he owes it, well, you’re not alone.
Judge Vincent Zurzolo of the U.S. Bankruptcy Court in Los Angeles said Mr. Charney’s bankruptcy was a legal tactic meant to hinder or delay collection efforts by hedge-fund manager Standard General LP to enforce about $30 million in judgments....
Judge Questions Basis for American Apparel Founder’s Bankruptcy [WSJ Pro Bankruptcy]
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