Amidst scandal and a shitload of drama, ousted American Apparel CEO Dov Charney has been re-hired by the company. After being removed for more than a handful of misconduct, Charney has not returned to his previous position. Rather, he has been hired as a “strategic consultant.”
How did he manage to outwit his Board of Directors at AA? Well, the founder of the corporation bought up half of the company’s shares via a loan from the Standard General, a whopping $25 million. In turn, Standard General earns itself a place on the Board of Directors.
As for Charney’s vague title of consultant, much is unclear. However, as the subject of Bloomberg’s Businessweek’s cover story, he stated, “They (SG) control the shares. I’m a bystander. My first issue is to save people’s jobs, put the company into a stable financial situation. And then we’ll evaluate whether or not I’ll be the janitor or the CEO or the consultant. … I believe Standard General will treat me fairly.”
All this is amidst a company investigation being conducted on Charney, so his position and power in the company is still up in the air. Let’s see how this whole mess plays out.
Yo! Adrian encourages you to shout his name like Rocky.