Los Angeles—He may be out, but he’s not down. Dov Charney, American Apparel founder and ousted ceo, reportedly is exploring ways to lure investors into buying back the bankrupt company.
Charney, who founded the teen apparel retailer in 1989, said on Friday he had hired Cardinal Advisors to advise it on the process.
American Apparel, which filed for Chapter 11 bankruptcy protection in October, did not immediately comment on the news.
The controversial Charney was removed as chief executive in June 2014 for alleged misconduct, including misusing company funds and failing to stop a subordinate from creating blog posts defaming former employees.
Charney lost his 42% stake in American Apparel, held as collateral by New York hedge fund Standard General, along with the holdings of other shareholders.
According to the announcement, Charney, investors and industry executives are exploring plans to “develop a value-maximizing solution for the company, its thousands of manufacturing, retail, administrative and creative employees, its customers, as well as the Los Angeles community,”
“What’s most important to me is to preserve the business model I built, and these jobs which are so precious,” Charney said. “This company is so unique; it would be tragic for this company to disappear.”
Time may be running out though for Charney. American Apparel’s unpaid creditors have until Jan. 7 to vote on the company’s bankruptcy plan.
“American Apparel appropriately evaluates all indications of interest in the company in the ordinary course,” an American Apparel spokesperson said. “It is premature to speculate on any such indications of interest.”