Charney has pledged to fight attempts to terminate his employment

Charney has pledged to fight attempts to terminate his employment

Ousted American Apparel CEO Dov Charney has upped its stake in the US fashion group to 42.98% as his battle with the company intensifies.

A filing today (1 July) revealed Charney acquired 27.4m shares on 27 June for US$19.5m, loaned to him by Standard General. He had previously held a 27.2% stake in the company.

He entered into the loan agreement with Standard General last week in a bid to help increase his stake while he contests his firing, which was made over an ongoing investigation into misconduct.

In response, the board adopted a so-called 'poison pill' stockholder rights plan at the weekend aimed at preventing Charney from gaining control.

According to Bloomberg, American Apparel yesterday turned down his request to hold a meeting of investors. Charney has pledged to fight attempts to terminate his employment and says some shareholders want him to continue to lead the company.

American Apparel last week hired advisory firm Peter J Solomon Company to ensure it has "adequate access to capital in the future at a reasonable cost".