The private equity firm that is expressing interest in a takeover of American Apparel will not re-institute founder Dov Charney as CEO, according to Fortune magazine.
Irving Place Capital has offered $1.30 to $1.40 a share, a 31% premium over the retailer's Friday closing price.
Charney for his part has revealed that he is down to his last personal $100,000 and is sleeping on a friend’s couch, a decline of many sorts since he was ousted in June as CEO.
Paula Schneider is scheduled to take over as CEO of American Apparel in a matter of days, but things look somewhat uncertain at the moment. Still, while private equity firm Irving Place Capital seems determined to reinstate Charney in some capacity, the company is saying he wouldn't be CEO. The whole scenario continues a tumultuous set of circumstances since Charney’s ouster several months ago.