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At this point one can say without reservation Dov is his own worst enemy…..
LOS ANGELES–(BUSINESS WIRE)– American Apparel, Inc. (NYSE MKT: APP), a vertically-integrated manufacturer, distributor, and retailer of branded fashion basic apparel, today filed suit in the Delaware Court of Chancery against Dov Charney, the former Chief Executive Officer, for violations of his Standstill Agreement with the Company.
Now, it is impossible not to feel bad for the guy. Most of cannot fathom what it must be like to build a $300M company from scratch and then have it ripped away from you. However, that does not change the fact he without a doubt deserved to have it ripped away. His behavior is unacceptable by any standard in today’s work environment.
Now Dov has violated the terms of the Standstill Agreement he signed. I’ve felt this way for some time and after reading through the filing (below) I think it is plain as day for anyone to see.
Take this gem for instance:
In addition, on April 29, 2014, American Apparel employee Stephanie Santos sent an email from her Company email account “on behalf of shareholders Jan Willem Hubner and Eric Riber” to other American Apparel employees describing the Hubner California Action, indicating that the litigation’s “outcome could dramatically alter the composition of the board of directors . . . .”American Apparel’s Chief Information Officer traced the origin of this email to Mr. Charney’s home address. Thus, it is reasonable to infer that Mr. Charney, either himself or acting through an employee visiting his home, breached Sections 3(c) and 3(h) of the Standstill Agreement by sending an email promoting the Hubner California Action, the purpose of which is to remove American Apparel directors elected at the 2014 annual meeting.
