American Apparel War Escalates as Charney Boosts Stake

Two weeks after an unceremonious ouster from American Apparel Inc., Dov Charney has a fighting chance of wresting back control of the clothing retailer he founded 16 years ago -- even as his opponents show no signs of backing down.

Charney’s fellow board members suspended him as chief executive officer last month for a litany of alleged misdeeds said to range from misuse of company funds to retaliating against a former employee that sued him for sexual assault. The company has enlisted a firm that specializes in investigations to help it dig up more dirt on Charney, and it’s making hay over the founder’s request that American Apparel return a computer containing his personal photos.