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Hedge fund to give American Apparel a lifeline
Hedge fund to give American Apparel a lifeline

American Apparel Inc. is getting a financial lifeline from its largest shareholders in an agreement that could leave founder Dov Charney out in the cold. The Los Angeles retailer has signed a deal that will bring in up to $25 million in cash from New York investment firm Standard General, enabling the company to avert bankruptcy, pay off an insistent creditor and bring in new leadership to help manage the struggling operation. Charney, ousted three weeks ago as chairman and chief executive amid allegations of misconduct, will remain with the company as a strategic consultant until an investigation into his behavior is concluded, American Apparel and Standard General said in a joint...

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