USA Today – American Apparel (APP), the struggling maker of clothes until recently led by controversial founder and former CEO Dov Charney, got a new thread of life after hedge fund Standard General said it will give $25 million in financial backing to the company.
The lifeline is much needed by the company, which continues to lose money and burn cash at a staggering pace. Standard General requires American Apparel’s board to be largely replaced and a board appointed to investigate alleged wrongdoing by Charney. Five of the seven board members, including Charney, will resign.
