American Apparel and Dov Charney have settled their disagreements, several months after the latter was fired, Apparel News reported.
A torrent of sexual harassment, assault and battery lawsuits against Charney was the grounds, back in December 2014, for American Apparel board of directors to let their founder and CEO go.
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Charney was replaced in January by Paula Schneider, who used to be at the helm of Speedo USA and Laundry by Shelli Segal.
Charney, American Apparel and the company’s photographer have agreed to pay the lawsuit awards and attorneys’ together, to the tune of at least $2.5 million, according to court documents.
In the past five years, American Apparel has lost $310 million, and its debt has reached more than $200 million, according to the LA Times.
The board is eager to get rid of all outstanding company debts, legal ends, because they’d like to be ready to sell the company to Irving Place Capital. The New York private equity firm said it might offer as much as $1.40 a share for American Apparel, which currently trades for about 73 cents a share.
Since her arrival, CEO Paula Schneider has dismissed two creative directors and one head designer.
