- Angela Gonzalez-Rodriguez |
Michael Bigger, on behalf of himself, his family, his trading platform, Bachelier, LLC , and his hedge fund, Bigger Capital, LP, which are significant shareholders of apparel retailer American Apparel, sent a letter to the retailer’s board of directors cautioning about conflicts of interest.
“This Board composition arrangement gives disproportionate power to Standard General and for all practical purposes, effective control over critical decisions for the Company and all its shareholders,” the letter reads.
The letter warns that hedge fund Standard General LP’s agreement with founder and former CEO Dov Charney, which turns over Charney’s shares in the company as loan payments, provides incentive to resist a sale that other shareholders may find favourable.
“While Standard General has no interest to sell out, not so for the rest of American Apparel's embattled shareholders. Most of us who have remained invested in the stock over the long-term have seen our stakes diminish dramatically in value with the tumultuous events over the past year or so.”