Suit says hedge fund purposely pushing American Apparel to bankruptcy
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Dov Charney, the ousted chief executive of American Apparel, could be vindicated if the latest shareholder lawsuit against the company — the fourth in three weeks — has merit.
The complaint alleges a shareholder and investor in the apparel retailer, New York hedge fund Standard General, is deliberately pushing the company into the ground and had rebuffed an acquisition overture.
Irving Place Capital approached the company last year, expressing interest in a deal that could have valued the company at up to $1.40 per share, or a 103-percent premium at the time, according to the complaint. The expression of interest never proceeded to a formal bid, however, because certain condition presented by Irving could not be met…
Suit says hedge fund purposely pushing American Apparel to bankruptcy
