The American Apparel (APP) board has rejected a plea to meet with ex-CEO Dov Charney, and has again refused to reinstate his position. Last week, the company suspended Charney for 30 days, and voted to replace him after that.
Charney's lawyer says APP did not give the ex-CEO 21 days’ notice of his severance package as required by law, and demanded the meeting with the board. Charney will officially be discharged on July 18. Prior to that, an agreement may be made if he promises not to challenge the board’s leadership.
The company is also reportedly working with investment bank Peter J. Solomon, and may look for a buyout by the end of the year.