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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.