Last week, U.S. Bankruptcy Court finally agreed on a plan that would reduce American Apparel's massive debt by $200 million. While this was good news for the bankrupt company, it didn't bode well for AA's founder Dov Charney. Charney recently attempted to take back his company with a $300 million bid, but it was ultimately rejected. The new ruling also wiped out the company's shareholders, which eliminated his AA stocks, previously valued at $8.2 million.
Despite the setbacks, Charney has a new plan of action. The AA founder will be launching his own line of basics for men and women that will be produced in the U.S., according to Chad Hagan an investor in the new endeavor.
"What's important to us now is we're able to form this new venture and put Dov at the helm and we're going to do basics again, We don't want to just start with some funny, online brand," Hagan told WWD. "We're going to do what Dov does best and then establish a robust e-commerce system. But we will not be debuting just as an online retailer."
Hagan also says that other investors are wholeheartedly behind the "colorful CEO." No word yet on an official launch date, but we have reached out to Charney for comment.