Hedge Fund To Add Member To American Apparel Board

Aug 28 2014 | 4:27am ET

Lion Capital Management may not be an investor in American Apparel anymore, but it still wants a seat on its board.

The hedge fund, which pushed the struggling retailer into a cash crunch last month when it called in a $10 million loan, still owns warrants to take a 12% stake in the company—and the right to appoint two board members. And it told the firm that it plans to appoint former Rupari Food Services CEO Robert Mintz to join the seven other directors of the newly-reconstituted board.

Mintz will join American Apparel’s two co-chairmen, three directors appointed by hedge fund Standard General and two others jointly agreed by Standard General and American Apparel. Standard General took control of American Apparel in concert with former CEO Dov Charney, who was fired in June over allegations of sexual harassment.

Lion was a major supporter of Charney and exercised its right to call in the loan after his ouster. American Apparel is currently conducting an investigation into Charney’s conduct before making a final decision on his fate.

Mintz is actually a childhood friend of Charney’s, having gone to school with him in Montréal. His appointment comes after he reached out to Lion’s Lyndon Lea to ask how he could help American Apparel.

Lion acquired its warrants and board rights at the end of 2013. The hedge fund has been without representation on the American Apparel board since 2011.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR