Dov Charney May Be a Bit Overconfident
When he's not fending off sexual harassment lawsuits from sexting former employees, American Apparel boss Dov Charney is doubling down his bet on his own failing company. Yesterday Charney spent $2 million buying AA shares to increase his stake in the company to 54%. Despite the fact that AA's future as "a going concern" is still in question.
The NY Post says that Dov is shoring up his position in case Lion Capital, the hedge fund that gave AA a lifesaving loan, decides to dilute his holdings—and, potentially, remove him from power. Of course, that would, uh, never happen.
"The ideal scenario would be for Dov to stick to the creative stuff, and let other people run the rest of the business," according to the source, pointing to the management structure of Polo Ralph Lauren as a model.
But the 42-year old CEO is still "a million miles away from getting on board with that idea," the source added.
Sure, sure Dov, just keep right on thinking that. With your track record of smooth and steady growth unblemished by any scandals directly traceable to your unstable personality, they'd never replace you.