Ousted American Apparel CEO Dov Charney has revealed he’s down to his last $US100,000.
In addition to his dwindling funds, Charney is sleeping on a friend’s couch in the Lower East Side of Manhattan.
American Apparel paid Charney an annual salary of $US800,000 as CEO. Today, the company he founded is valued at between $US226-$US243 million.
Charney claims he was betrayed by Standard General, a hedge fund that gave him a loan in July so he could boost his ownership of American Apparel.
Standard General controls his shares as collateral and put several members on American Apparel’s board.
“I gave them my entire life’s work, and they agreed to put me back in,” Charney told Regan. “Instead, they used this investigation to fire me.”
American Apparel abruptly fired Charney as CEO in June because of “concerns about his trustworthiness,” The Wall Street Journal reported at the time. Since then, the company has been further investigating him.
“Based on this investigation, the special committee determined that it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee,” the company said in a release last week. “While under suspension as CEO, Mr. Charney had been serving as a consultant to the Company. This relationship has now been terminated.”
Charney’s replacement, Paula Schneider, is reportedly a close friend of his.
Regan notes that Charney, who is known for his erratic behaviour, could be a liability for the struggling company.
Here’s the video with details of her interview.
Business Insider Emails & Alerts
Site highlights each day to your inbox.