Business

Dov Charney fighting hedge funds over family wealth

The long-standing economic struggle between the disgraceful American Apparel founder Dob Charney and his former hedge fund ally Su Kim is becoming more personal.

After years of unsuccessful attempts to recover a $ 20 million loan to Charney from 2014, he failed to keep a sloppy American Apparel CEO in his post in allegations of sexual misconduct. Although part of the bid he made, Kim is now chasing Charney’s family, according to sources and court documents, his property.

“The goal is to make Dov’s life disastrous,” he says, taking over the Los Angeles Apparel company he started after he was kicked out of American Apparel.

Attorneys at Kim’s Standard General Hedge Fund will expel Harvard-educated architect Morris Charney from Quebec through a telephone conference on January 7. Court documents have already shown that they have dismissed Moshe Safdie, the uncle of Charney, the architect of the National Gallery of Canada in Ottawa.

The problem is Charney’s assets, or obviously their lack.

The new company is owned by his dad through a trust, and Charney’s only other asset appears to be a 20-room home in the Silver Lake district of Los Angeles. This is pledged to both his uncle and attorney Keith Fink. paper.

Charney’s proponents said this was a company started by Tufts University by a former high-flying clothing executive who was accused of sleeping with an employee and a woman hired to model his clothing. A dormitory room in the 1980s, which he says is because he is having a hard time recovering after being banished from.

He was unlucky, his dad told Post, he lives outside the LA apparel warehouse in south-central Los Angeles.

“Dob doesn’t have his own address or bank account,” Senior Charney said in a telephone interview.

“Dov isn’t living a normal life. I told him it was wrong. He’s living the life of a person with judgment overhead,” said COVID ready? Please inspect the building, said the 81-year-old dad.

In fact, the biggest ruling was inherited in 2017 when a judge in the Chancery Court of Delaware ruled that Standard General could attempt to collect debt.

Kim’s lawyer is trying to prove that Charney is wigging payments by putting his assets in someone else’s name to make money. And they are expected to question whether Morris Charney, who says he lost his pension when American Apparel got angry, actually invested money to fund the Los Angeles Apparel. So far, no evidence has been provided to show that he has, sources told the post.

But Elder Charney says they prove wrong. “They will waste time. I’m the one who really funds everything.”

He told the post that he would pay his son a salary to carry out his daily work. And LA apparel is making money, he said without providing details.

“I talk to Dov almost every day,” he said.

The success of Standard General will take over the company that makes clothes that look very much like American Apparel, from light-colored leggings to light-colored leggings. According to sources familiar with the incident, Standard General estimates that LA apparel generated $ 8 to $ 25 million in sales prior to the pandemic.

According to reports, the company’s production was shut down for several weeks in July after four warehouse workers died of COVID and 375 were positive. However, Charney also reportedly secured what appeared to be a favorable two-year contract to make a US Air Force face mask.

Kim Su
Kim Su

Kim’s hedge fund is also chasing Charney’s LA mansion. Giraud estimates it’s worth $ 5.6 million, but Charney’s attorney Keith Fink says it’s “underwater,” or less valuable than debt.

To get a home, Standard General is trying to prove that the profits that Charney transferred to others, including Fink, were fraudulent. It would argue that the transfer to lawyer, which occurred just months after suing him in 2015, was made to keep the house out of reach.

Charney is expected to claim to have transferred interest on the house to Fink in exchange for $ 3.7 million in legal affairs. Fink defended Charney in his ongoing proceedings against the expulsion of American Apparel and Standard General, he said, and was not properly paid.

Mr Fink said he hopes to be “dismissed” before the trial date is set, but the proceedings are allowed to be tried. “This is also because there were zero improper things,” he said. “The work we weren’t paid for was done. Standard General has no evidence to argue against this.”

Charney’s 82-year-old uncle Moshe Safdie also has liens on Silver Lake House. However, in investigating these relationships, Kim’s attorney decided not to ask him to release the deal, sources said.

What they learned was that Safdi, a world-renowned architect who introduced Charney’s father to his mother, lent $ 2 million to his nephew in 2011 and wasn’t repaid.

In a deposit in December 2018, Charney said he was interested in the house to his uncle in 2016 “to prevent legal conflicts with his family.”

“Have your uncle ever tried to seize this interest?” Kim’s lawyer asked.

“That’s a consideration he thinks he has,” Charney said.

Dov Charney fighting hedge funds over family wealth

Source link Dov Charney fighting hedge funds over family wealth

Back to top button