Hedge fund Standard General gained sway over American Apparel Inc. with an 11th-hour lifeline, part of a deal that will overhaul the company's board and install ousted founder Dov Charney as a strategic consultant — at least for now, the Wall Street Journal reported today. The deal, completed yesterday, will provide the company with $25 million, some of which will be used to pay off a loan that has been called in by Lion Capital, another investment firm. As part of the deal, all but two of American Apparel's seven-member board will be replaced. Charney will serve as a strategic consultant until an investigation into his conduct is completed.
