Dov Charney took another big loss this week.
After being ousted from American Apparel in 2014, the former CEO has endured a long-fought battle to regain control of the struggling fashion brand. His latest attempt involved placing a $300 million takeover bid on the company, which was backed by investors Hagan Capital Group and Silver Creek Capital Group. But it appears those efforts were for nothing.
According to the Los Angles Times, a U.S. Bankruptcy Court judge approved an alternative reorganization plan that would hand over American Apparel to its lenders, reducing the brand’s debt by over $200 million. The ruling will ultimately wipe out shareholders, including Charney, who owned about 40 percent of the company’s stock.
Following Monday’s decision, the L.A. Times caught up with Charney, who said he will not appeal the ruling as he does not have the financial means to do so. But he did pen a lengthy response to the judge's decision that was posted on Medium, as pointed out by Racked.
He ended the piece with a rather pessimistic outlook for the brand that he started nearly three decades ago. He does, however, seem hopeful for the next chapter in his career—hinting at the possibility of another fashion line.
You can read Charney’s full response here.