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Standard General gains control of ousted American Apparel CEO's shares

Published on Jul 8, 2014 9:32 AM

(Reuters) - Investment firm Standard General said Monday it gained voting control of ousted American Apparel Chief Executive Officer Dov Charney's shares in the firm and will back the retailer in its battle against bankruptcy.

Standard General said it also planned to nominate a new slate of independent directors to the American Apparel board, to help the struggling retailer in its turnaround efforts.

The New York-based firm said it was "prepared to lend ... credibility and capital resources to prevent this avoidable outcome (bankruptcy, or a liquidation of the company)".

Montreal-born Charney said he increased his stake in the apparel retailer to 43 per cent as of June 27.

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