{"id":42887,"date":"2014-07-03T07:15:20","date_gmt":"2014-07-03T11:15:20","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=42887"},"modified":"2014-07-03T07:28:42","modified_gmt":"2014-07-03T11:28:42","slug":"dov-charneys-hedge-fund-plan-may-backfire","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/07\/2014\/dov-charneys-hedge-fund-plan-may-backfire.html","title":{"rendered":"Dov Charney’s Hedge Fund Plan May Backfire"},"content":{"rendered":"

\"\"<\/a>New York (HedgeCo.Net) – Former American Apparel founder and CEO has handed his entire stake over to New York hedge fund\u00a0Standard General LP. The deal, including a loan, boosted his share from 27% to 43%, and enabled the hedge fund to negotiate directly with the current independent directors.<\/p>\n

However, the NYT reports: “In striking a deal that gave him a 43 percent stake in American Apparel, Mr. Charney effectively ceded any authority that is not inextricably linked to Standard General\u2019s approval. In essence, he is not permitted to make any move unless Standard General consents, according to the terms of the agreement.”<\/p>\n

\u201cI handed over my ownership control to Standard General so they could protect the company and all of its stakeholders, particularly the employees,\u201d Charney said. \u201cThe least important thing was me. I know that will be dealt with fairly later.\u201d<\/p>\n

At American Apparel, which he started at age 20, Charney pioneered the Made in USA sweatshop-free model of fair wages and a refusal to outsource manufacturing. He has been involved in several controversial lawsuits, including a $10M lawsuit from film director Woody Allen and several sexual harassment lawsuits involving ex-employees. The issues resulting from some of these led to his dismissal as the company’s CEO.<\/p>\n

Standard General was founded in 2007 and has been a SEC-registered Investment Adviser since 2009.<\/p>\n

Alex Akesson
Editor for\u00a0<\/span>HedgeCo.net<\/a>
alex@hedgeco.net<\/a>
HedgeCo.Net<\/a>\u00a0is a premier\u00a0<\/span>hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<\/span>HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<\/span>Hedge Funds<\/a>!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – Former American Apparel founder and CEO has handed his entire stake over to New York hedge fund\u00a0Standard General LP. The deal, including a loan, boosted his share from 27% to 43%, and enabled the hedge fund […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16044,3],"tags":[],"class_list":["post-42887","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-strategies-2","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=42887"}],"version-history":[{"count":7,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42887\/revisions"}],"predecessor-version":[{"id":42897,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42887\/revisions\/42897"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=42887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=42887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=42887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}