Try as he might, Dov Charney just can't win. The founder and previous CEO of American Apparel lost his bid for the bankrupt company he created when he was in college, the New York Times reports. Instead, the judge ruled in favor of a plan proposed by that company and its creditors that would see nearly $200 million in debt eliminated.
The decision was made by U.S. Bankruptcy Judge Brendan Shannon, according to Reuters. It puts the fate of the company in the hands of a group of hedge funds, Monarch Alternative Capital controlling a substantial number of the company's stores.
American Apparel filed for bankruptcy back in October, having not seen profits since 2009.
Ousted CEO Dov Charney commented on the court's decision. "I did the best that I could. They threw me out and made it worse," he said, Bloomberg reports.
Judge Shannon also commented on the decision, specifically Charney's proposal, saying, "The transaction offered as an alternative doesn't provide sufficient reason to reject the bid."
The decision comes after a two-day trial in which Charney tried to convince the judge of his plan to restore the company to what it once was with the help of his financial backers.
