Dov Charney, founder and disgraced former CEO of American Apparel may be headed toward skid row. He said in an interview with Bloomberg that he is down to his last $100, 000 and is sleeping on a friend’s sofa in the Lower East Side. It was announced last week that he would be ousted as a consultant after having been demoted as CEO. Allegations of sexual harassment arose last June, but it was reported that he was generally unreliable and unstable, and after an investigation, it was determined he would not be re-instated as CEO.
Charney received an $800, 000 annual salary when he was CEO and the company was valued in a range of $226 million and $243 million. Charney blames Standard General who loaned him money so he could fight a battle with the company he founded to regain his authority, but Standard General decided to put its own members on the board, several of whom were not sympathetic to Charney. “I gave them my entire life’s work, and they agreed to put me back in. Instead, they used this investigation to fire me.”