After American Apparel Founder Ouster, Firm Needs Cash

After American Apparel Inc (NYSEMKT:APP)’s June 18 termination of its founder, Dov Charney, in an issue related to “willful misconduct” which in part involves a sex harassment suit accusing Charney of making an employee his “sex slave,” the company has lost funding from a Charney supporter and is facing a cash crunch.

Lion Capital use removal of Charney by the American Apparel BoD as a clause

According to a report in the New York Post, UK-based Lion Capital used the removal of Charney by the American Apparel Inc (NYSEMKT:APP) board of directors to trigger a clause in the loan agreement that requires American Apparel to repay a $10 million...