Back in December, it was reported that ousted former CEO and founder of American Apparel, Dov Charney, could soon be back at the helm of the company thanks to nonbinding acquisition offers from the firms backing him. The Charney-associated investors then put in a $200 million USD bid for the company earlier this month. However, it looks like that bid won’t end up coming out on top.
The Business of Fashion reports that American Apparel has won approval of its Charney-free bankruptcy plan. Judge Brendan Shannon rejected Charney’s proposal today, approving instead a reorganization of the company with senior lenders at the helm — thus reducing American Apparel’s liabilities by roughly $200 million USD. “There really is not a meaningful alternative on the table,” according to Shannon.
The move likely means that we’ve heard the last of Charney at the company he founded as it looks to return to its pre-bankruptcy glory days.