Ten days after suspending chairman and CEO Dov Charney for alleged misconduct, American Apparel Inc. adopted a one-year stockholder rights plan it says would protect shareholders in a proxy fight.
The company calls the plan, adopted on June 28, a response to a series of rapid accumulations of its common stock and to Charney’s assertion in a Securities and Exchange Commission filing that he intends to hang on to control of the company. American Apparel’s board has said it intends to fire Charney; the Wall Street Journal reports he has filed an arbitration petition to prevent his removal.
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