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Controversial ex-American Apparel CEO claims he's broke


The controversial former CEO of bankrupt retailer American Apparel said he’s broke.

Dov Charney, who was fired in 2014 after a tumultuous reign, told a Delaware judge Wednesday that he can’t afford a lawyer in a legal battle connected to the retailer’s troubles, according to the document obtained by Paste BN.

The founder is the target of a lawsuit from hedge fund Standard General, a major American Apparel investor involved in its restructuring, over a deal they made in 2014 involving Charney’s attempt to regain control of the company.

In a letter to a Delaware Chancery Court judge, Charney said he may have to continue to defend himself in the lawsuit if he can't find new lawyers in Delaware "willing to work with me."

“As you may know, I was fired by American Apparel, the company I founded in Montreal over three decades ago, with no severance or otherwise,” Charney wrote. “All of my shareholder interests have been wiped out, and I have depleted my savings on defending my life’s work and legal rights.”

The address Charney lists on the letter is a more than 11,000 square-foot mansion in Los Angeles' Silver Lake neighborhood, according to Trulia.

Charney, who owned more than 5% of the company when it filed for bankruptcy last month, has been the source of much controversy in recent years.

He is the target of several lawsuits alleging sexual harassment for what accusers described as his inappropriate behavior in the office. He sued American Apparel over his exit and Standard General over their deal.

Charney had long made headlines for airing sexualized ads featuring young women and bragging about the company’s “sweatshop-free,” made-in-the-USA business model.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.

Contributing: Hadley Malcolm