Lion Capital, which has the authority because of loans to buy 12% of American Apparel and has some say about its board, is filling two vacant board seats in the company. Robert Mintz, who was chief executive of rib and barbecue company, Rupari, was nominated to the board. Mintz has a long relationship with the disgraced American Apparel CEO, Dov Charney, and attended middle and high school with him in Montreal.
Standard General, which owns a stake in the company, stripped Charney of much of his authority as a CEO after allegations over his personal conduct. Lion Capital, which lended money to the company, has significant influence over American Apparel, including rights to buy much of its shares and to decide who sits on the board.
American Apparel’s shares continue to decline amid the ongoing controversy over the future of Dov Charney and its board. The decline was 9 cents a share compared to 34 cents a year ago, but the stock is not exactly shooting up amid the ongoing controversy.