American Apparel Founder Dov Charney Is Nearly Broke and Homeless
Dov Charney, creepy and gross founder of American Apparel, was ousted from the company (again) last week and, well, things aren't going to great for him. Today he revealed to Bloomberg that he only has $100,000 left in the bank and is crashing on a friend's couch in New York.
Now, the most logical response to this news is, "One hundred thousand dollars is still a lot of money, and, in fact, it is more money than I currently have. I have no sympathy for Dov Charney." Let me address both of these points.
$100,000 is a lot of money, but if you were making an $800,000 annual salary—as Charney was as CEO of American Apparel—it would probably start to seem like not very much money. $800,000 over 12 months breaks down to about $66,000 per month, before taxes, so Dov Charney currently has something like 1.5 months salary in the bank, despite being the CEO of American Apparel for over a decade. I am no financial planner, but that seems bad.
All of that is before you consider that American Apparel is, according to Reuters, worth something north of $225 million. Dov Charney should probably have more than $100,000. So, why does Dov Charney not have millions? Because, by his own admission, he got fucked by a hedge fund.
Via Business Insider:
Charney says he was betrayed by Standard General, a hedge fund that gave him a loan in July so he could boost his ownership of American Apparel.
Standard General controls his shares as collateral and put several members on American Apparel's board.
"I gave them my entire life's work, and they agreed to put me back in," Charney told Regan. "Instead, they used this investigation to fire me."
Getting swindled by a hedge fund puts Dov Charney in a class with plenty of other Americans, but it makes him seem no less stupid, as someone who was supposed to run a company, and, theoretically, be smart enough not to unknowingly transfer vast amounts of wealth to a damn hedge fund.
As for the second point: should you have sympathy for Dov Charney? No. No you should not.
[image via Getty]