Ousted American Apparel CEO increases stake - 13 WTHR Indianapolis

Ousted American Apparel CEO increases stake

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NEW YORK -

Ousted American Apparel CEO Dov Charney has increased his stake in the clothing chain to nearly 43 percent.

In a regulatory filing, Charney reports he now owns 74.6 million shares. Previously, his stake was 27 percent.

Charney also sent a letter last week to the board seeking a meeting of stockholders on Sept. 25 for the purpose of expanding the board to 15 members, according to the filing.

On Saturday, American Apparel adopted a shareholder rights plan, commonly called a "poison pill," a day after a bid from Charney to increase his control.

On June, 18, the American Apparel's board fired Charney as chairman and suspended him as president and CEO. The move calls for a contractually required 30-day period before he can be terminated. The board cited "alleged misconduct."

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