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Dov Charney Says He’s Exploring Plans to Revive American Apparel

December 4, 2015, 6:24 PM UTC
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Dov Charney, chairman and chief executive officer of American Apparel Inc., stands for a portrait in a company retail store in New York, U.S., on Thursday, July 29, 2010. Starting the company in a dorm at Tufts University in Medford, Massachusetts, Charney built a worldwide empire of 280 clothing stores by leaping out ahead of mainstream fashion. He personified the racy, risk-taking aesthetics of his business and is now facing the consequences - skittish lenders and investors who doubt his ability to oversee his own creation. Photographer: Keith Bedford/Bloomberg via Getty Images
Photograph by Keith Bedford — Bloomberg via Getty Images

Dec 4 (Reuters) – American Apparel Inc founder and former Chief Executive Dov Charney said he was exploring plans with potential and existing investors and industry executives to revive the bankrupt company.

Charney, who founded the teen apparel retailer in 1989, said on Friday he had hired Cardinal Advisors LLC to advise it on the process.

American Apparel did not immediately comment on the news.

The company, known for its racy advertising and its controversial founder, filed for Chapter 11 bankruptcy protection in October.

The retailer, which had about 9,000 employees and 227 stores as of Sept. 30, had said that its operations would continue under a deal with its most secured lenders.

Charney lost 42 percent stake in American Apparel, held as collateral by New York hedge fund Standard General LP, along with the holdings of other shareholders.

He was ousted as CEO in June 2014 for alleged misconduct, including misusing company funds and failing to stop a subordinate from creating blog posts defaming former employees.

(Reporting by Ramkumar Iyer in Bengaluru; Editing by Kirti Pandey)