Dov Charney Raises Stake In American Apparel - Update

(RTTNews) - Dov Charney, the ousted chief executive and founder of American Apparel Inc (APP), has boosted his holdings in the company to 43 percent, in a bid to exercise control.

In regulatory filings, Charney said he now now owns about 74.6 million shares in the branded fashion apparel maker as of Friday. Charney earlier held a 27 percent stake in the company.

Last month, the American Apparel board ousted Charney as chairman and suspended him as president and CEO, citing alleged misconduct. His work contract requires a 30-day period before he can be terminated.

But Charney has denied the charges and is keen to exercise control of the company. Last week, Charney said he is in talks with supportive shareholders to bring changes to the board and management at American Apparel.

Meanwhile, American Apparel on Saturday adopted a shareholder rights plan, or poison pill, in a bid to limit the ability of any person or group, including Charney, to take control of the company without compensating all stockholders.

American Apparel stock is trading at $0.80, down $0.10 or 11.33%, on a volume of 4.5 million shares on the NYSE.