Logo

It’s official: Dov Charney has won a reprieve.

Confirming a report in The Post late last week, American Apparel said in a statement yesterday it had secured a financial lifeline to stave off the threat of Chapter 11.

The racy clothing retailer is getting a cash injection of $14.9 million from a consortium of Canadian investors led by frozen-yogurt tycoon Michael Serruya, who bailed out Jamba Juice in a similar deal two years earlier.

Also leading the financing is Delavaco Capital, a private-equity firm based in Fort Lauderdale, Fla.

“We believe in the American Apparel brand and we believe in Dov Charney,” Serruya said in a statement.

The investors will get common stock priced at 90 cents a share in exchange for their cash, with the option to buy 27.4 million shares at the same price during the next 180 days.

Comments
anonymous profile image
Powered by RoundtableBuilt on infrastructure designed for real-time media. Learn more at RTB.io.© Roundtable 2026. By using this site you agree to the Terms of Use and Privacy Policy