Dov Charney, Founder of American Apparel, Files for Bankruptcy

Dov Charney, founder of the formerly high-flying retailer American Apparel Inc., filed for bankruptcy along with his latest business venture, a vintage clothing store.

Charney was forced into bankruptcy court because he owed $30 million to a hedge fund involved with American Apparel, which shut down all of its outlets and became an online retailer after going through two of its own bankruptcies.

Dov Charneyon the sewing floor at LA Apparel in Los Angeles in 2020.

Photographer: Jason Armond/Los Angeles Times/Getty Images

“They’ve been pressuring him,” Charney’s attorney, William N. Lobel, said Friday. “It looks like the best way to handle it at this point is with a bankruptcy.”

While in bankruptcy, Charney will be able ...