American Apparel Company

Ousted American Apparel Founder Dov Charney Says He’s Secured $10 Million Loan for New Venture

Dov Charney is back—and is extremely positive about his future.

The questionable founder and previous CEO of United states Apparel has actually created a T-shirt organization with some of their old peers and has currently “received indication of interest from major consumers because area, ” he tells Fortune.

Charney says which he has “a company which could go in to the vast sums in product sales, ” in line with the proven fact that he produced “five billion in sales in the 10 years before my deviation from American Apparel.”

“I'm sure simple tips to offer, ” he claims. “I’m an associate of this demographic which I provide, and I have no intention of making this business and I intend to get into it very forcefully.”

For now, the new brand name is attempting to sell exclusively with other attire companies, though Charney states he plans to sell to customers “soon.”

Much like United states Apparel , that he founded in 1989 and ended up being forced out of in 2014, Charney’s new organization will start with basic products which is made exclusively in Los Angeles—though maybe not in downtown L.A., which Charney notes he has already been “priced from.”

“It’s actually the determination behind the entire brand name. . .we believe that Los Angeles is a particular place in which art, commerce, creativity, manufacturing, and enthusiasm come together like no place else, ” he claims.

He additionally claims the weblog is an endeavor to show their consumers just what he means: “I’m genuine individual, I have a real voice, ” he states.

The president declined to share with you information about financing, though he did mention that it is “easy” for him to get unsecured financing as a result of their industry connections. He in addition states he was a $10 million asset-based loan—though he declined to express from who.

In April, stated that Charney was in talks to get $20 million the brand-new venture from Hagan Capital Group, that was the investors behind a $300 million quote backing Charney’s come back to United states Apparel. Hagan also failed to answer Fortune about the firm’s participation in the endeavor.

The newest venture comes nearly 2 yrs after American Apparel terminated Charney as CEO. As he was chief, Charney faced repeated accusations of sexual harassment from store workers, though he notes he had not been required out from the organization because of this. (the organization’s board of administrators said at that time the ouster “grew away from a continuous research into so-called misconduct.”) Charney has vehemently denied all allegations associated with the type and is suing the company for fraud and wrongful cancellation.

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