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Stock Market & Financial Investment News

News Breaks
June 19, 2014
05:28 EDTAPPAmerican Apparel CEO suspended, John Luttrell named Interim CEO
The board of American Apparel voted to replace Dov Charney as chairman and notified him of its intent to terminate his employment as president and CEO for cause. It is expected that the termination will be effective following a 30-day cure period required under the terms of Charney’s employment agreement. The board suspended Charney from his positions as president and CEO, effective immediately, pending the expiration of the cure period. At the same time, the board appointed John Luttrell as Interim CEO. Luttrell, who has been with American Apparel since February 2011 and currently serves as executive vice president and CFO, will continue in those positions as well. Also effective immediately, the board appointed Allan Mayer and David Danziger as co-chairmen to replace Charney as chairman of the board. In accordance with the terms of his employment agreement, the board intends to request Charney’s resignation as a member of the board concurrently with the effective time of his termination. Mayer, who has been a member of the board since the company went public in 2007 and has served as its lead independent director for the past three years, said the board’s decision to replace Charney grew out of an ongoing investigation into alleged misconduct. Luttrell said American Apparel would remain committed to its sweatshop-free, Made in USA manufacturing philosophy. As a result of the management changes, the company may have been deemed to have triggered an event of default under its credit agreements and will be in discussions with its lenders for a waiver of the default.
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July 27, 2015
07:22 EDTAPPAmerican Apparel close to bankruptcy, NY Post reports
American Apparel is on the brink of bankruptcy, the New York Post reports. The retailer is currently short on cash reserves and faces a large bond payment in less than three months, all in addition to piling legal bills over the Dov Charney lawsuit over alleged sexual harassment, the report says. Investors are bracing themselves for all-out bankruptcy when the company releases its quarterly earnings, the report adds. Reference Link
July 15, 2015
14:29 EDTAPPAmerican Apparel stake holder Standard General sues Charney, Reuters says
American Apparel investor, Standard General, has sued the company's ex-CEO Dov Charney for the first time, alleging that the ousted CEO has not made good on promises to the hedge fund and looks to impose an injunction to end his "meritless" and "destructive actions" against the firm, says Reuters, in a report from last night. Reference Link

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