American Apparel Drops 20%; Charney Still Won't Go Away
American Apparel (NYSE: APP) shares have fallen over 20 percent after its former chairman filed a request for arbitration over his firing.
The Wall Street Journal reported former chairman Dov Charney filed the request Tuesday with the American Arbitration Association.
American Apparel said Monday it hired Peter J. Solomon Co. as financial advisor to help obtain capital, but the company said it's "not for sale" and had no immediate capital needs.
Earlier in a SEC filing, Charney said he will "vigorously contest" his firing.
The former chairman and founder holds a 27 percent stake in the apparel maker and said he and other unnamed supporters constitute a "group" that will seek to alter the company's board and management.
The company had said it refused a proposed meeting with Charney Monday.
Chaney was fired as chairman June 18 for alleged misuse of company funds. It's expected he will be removed as CEO following a 30-day contractual waiting period.
American Apparel traded recently at $0.53 per share, down 21.25 percent. Its 52-week high was $2.09.
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