Dov Charney Is Launching a New American Apparel Competitor
He’s finally moving on. Kind of.
Just last week, the court formally approved American Apparel’s reorganization plan, thus thwarting Dov Charney’s last-ditch efforts to muscle his way back into his former company through a $300 million takeover bid proposed by investors promising to reinstate him in some capacity.
But after almost two years of failed attempts to gain control of the retailer which he founded in 1989, it looks like Charney has officially given up and moved on. Well, kind of.
Read more Poppy Delevingne Lands a Writing Gig
WWD first reported that Charney and his investors at Hagan Capital Group are making moves to build a new retailer specializing in the production of quality men's and women's basics. Managing partner Chad Hagan outlined the company's strategy to the trade Monday, noting that all apparel will be manufactured in the U.S. and that the retailer would be focusing on reaching the wholesale market. Basically, American Apparel 2.0.
“We don’t want to just start with some funny, online brand,” Hagan told WWD. “We’re going to do what Dov does best and then establish a robust e-commerce system. But we will not be debuting just as an online retailer.”
As for those sexual harassment rumors surrounding Charney's exit from American Apparel in 2014 — which started the whole messy back-and-forth — Hagan says he isn't put off. “Dov is a colorful CEO,” he conceded, adding, “but we’ve been witnessing a lot of emotions from both sides in this bankruptcy.”
Feb. 4, 4:45 p.m. An earlier version of this article stated that Charney was accused of sexual misconduct in his dismissal. Officially, he was terminated for breaching his fiduciary duty, violating company policy and misusing corporate assets.