What is Dov Charney's Net Worth?
Dov Charney is a Canadian businessman and entrepreneur best known for founding American Apparel. His current net worth is $500 thousand. American Apparel gained significant attention due to its provocative ad campaigns and advocacy for social causes such as immigration and gay rights. Despite its early success, Charney was dismissed as CEO in 2014, and the company filed for bankruptcy the following year. American Apparel was eventually acquired by Gildan Activewear in 2017. At his peak, Charney's shares in the company were worth hundreds of millions, but he never sold any and lost most of his wealth when the company went under. He claimed to be worth less than $100,000 despite owning a $4.1 million home in Los Angeles.
In 2016, Charney founded Los Angeles Apparel, with products manufactured in the United States. Recognized for his entrepreneurial spirit, Charney was named Ernst & Young's Entrepreneur of the Year and "Apparel Magazine's" Man of the Year in 2004. He was also listed among the Top 100 powerful people in Southern California by the "Los Angeles Times."
Loss of Wealth
When American Apparel went public in 2007, Charney's stake was worth $480 million. By the end of that year, with the stock price peaking at $15.50, Charney's net worth soared to $600 million, and he confidently projected reaching billionaire status. However, due to his controversies, the company's stock plummeted, trading for less than 50 cents per share by 2014. His personal stake fell to less than $18 million.
Charney never sold any shares as the stock price declined. In June 2014, he was suspended, and subsequently handed his 47.2 million shares to the hedge fund Standard General, attempting to regain control of the company. Using his shares as collateral, he secured loans to buy more stock. By December 2014, Charney accused Standard General of betraying their deal, claiming he was worth less than $100,000 and sleeping on a friend's couch.
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Early Life
Dov Charney was born on January 31, 1969, in Montreal, Quebec. His mother, Sylvia, is an artist, and his father, Morris, is an architect; so is his maternal uncle, Moshe Safdie. Charney attended Choate Rosemary Hall and St. George's School of Montreal. During his school years, he began importing Fruit of the Loom and Hanes t-shirts from the U.S. to Canada, selling them for a profit. He attended Tufts University but dropped out in 1990.
Career
With a $10,000 loan from his parents after dropping out of Tufts, Charney launched American Apparel in South Carolina. He learned about wholesale and manufacturing and moved to Los Angeles in 1997. By 2001, the company had generated $12 million in revenue, and in 2003, Charney opened the first retail store in Echo Park, Los Angeles. By 2006, there were 140 stores, and by 2007, American Apparel became the largest t-shirt manufacturer in the U.S. Despite its success, Charney was suspended and terminated in 2014 due to numerous legal issues.
In 2016, Charney founded Los Angeles Apparel, which employed 350 workers within two years. During the COVID-19 pandemic, the company began producing medical gowns and face masks, donating many to healthcare workers and first responders. However, in 2020, the L.A. County Department of Public Health temporarily shut down the company after over 300 employees tested positive for COVID-19, leading to four deaths.
Personal Life
Charney has faced multiple sexual harassment lawsuits, many of which were dismissed, settled, or sent to private arbitration. Controversially, during a 2004 interview with "Jane" magazine, Charney engaged in inappropriate behavior. He later defended his actions by claiming that he misunderstood the boundaries between personal and professional interactions.
In 2011, former employee Irene Morales sued Charney, alleging that he kept her as a sex slave and posted nude photos of her online. The lawsuit accused Charney of coercing her into performing sexual acts under threat of job loss. This lawsuit contributed to the decision by the American Apparel board to remove him from the company.
Awards
Charney received the Marketing Excellence Award at the 2005 LA Fashion Awards and was named Retailer of the Year at the 2008 Michael Awards for the Fashion Industry. He was also a finalist for "Time" magazine's 2009 "100 most influential people in the world" list.
Real Estate
In 2006, Charney purchased the Garbutt House in Silver Lake, Los Angeles, for $4.1 million. Built by Frank A. Garbutt in 1923, the house is made of concrete with steel doors and over 20 rooms. It is listed on the National Register of Historic Places. Here is a video tour of the Garbutt House:
