American Apparel's former chief executive officer Dov Charney will take the stand in Bankruptcy Court today in a last-ditch effort to wrest control of the ailing teen retailer from a group of hedge funds, Reuters reported yesterday. Los Angeles-based American Apparel Inc, known for its "Made in the U.S.A." fashion, filed for bankruptcy in October, saddled by debt, excess inventory and millions of dollars in legal claims tied to Charney. American Apparel wants approval for a plan that will bring the company out of bankruptcy under the control of hedge fund investors, including Standard General and Monarch Alternative Capital. Last week the company's board rejected a $300 million takeover bid involving Charney. Bankruptcy Judge Brendan Shannon must decide if the hedge fund-backed plan, which has the backing of a committee of the company's creditors, is fair and feasible.
