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A US bankruptcy court judge approved American Apparel's plan to reorganize and repay its creditors yesterday, the Los Angeles Times reports, rejecting ousted AA founder Dov Charney's attempts to derail the restructuring plan with a $300 million takeover bid.
The decision renders Charney's large ownership stake in AA worthless. He owned more than 40% of the company's stock, according to the LA Times.
Charney released a long statement via Medium on Monday reflecting on the judge’s decision, his fight against AA's current management, and his journey since starting the brand. Charney ends his Medium manifesto by saying:
The sad reality is that American Apparel, the largest garment manufacturer in the United States, will not survive at this pace and I don’t believe the current management has the talent to bring it back to health.
At the end of this saga, I, like the many former stockholders, will most likely be left with nothing. Despite that, what gives me great optimism are the things I possess that can’t be stolen by a predatory hedge fund — my ideas, values, drive, authenticity, integrity and my passion. To that end I ask that my supporters stay tuned.
Today we finally know that it is the end of a great era. American Apparel was to all of us more then just a job, it was an exciting life style, it was inspiring and a rebellious business model. We've been fighting against a corporation & hedge fund that took control over our company and screwed it's workers, and unfortunately will continue to do so. The decision of the judge proves my beliefs that the American Judicial court system is unfair and does not respect employees as it should, especially immigrant workers. I thank Dov Charney everyday for everything he has done and still does to his workers. I'm proud to have been a part of a movement that does not choose money and power over real people’s needs. We turn that page now to open a new one, one where we will brainstorm and rebuild a new empire. We have mouths to feed, and history to write. Thank you Dov, Thank you Employees of the once great American Apparel. Our motivation to seek prosperity and justice continues. Let the world know that it's not the end! #RIPAmericanApparel #ComingSoon #AAemployees #AmericanApparel #berniesanders Best, Stephanie Padilha -President of the GBWAA