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Things Are a Mess at American Apparel

Image: WENN

Image: WENN

American Apparel’s got a lot to deal with now that it has officially fired CEO Dov Charney. The announcement that the troubled boss was officially out at the flailing label came last week with the announcement of his replacement, who is due to start in January. Since the news broke, several parties have speculated that Charney could be planning to sue the company for damages. Lots of people are waiting with bated breath for him to officially take the company to court. According to WWD, a lawsuit could cost American Apparel “hundreds of millions of dollars,” which the brand doesn’t have. 

For now, the company has adopted a poison pill, which will bar any shareholder from buying a controlling stake in the company without the permission of all the shareholders. This comes with rumors that Charney is in talks with investment firm Irving Place Capital with plans to buy back his company

Whatever becomes of American Apparel, one thing’s for sure: This adjustment period is going to be messy.

[via WWD]