New York Post

Chateau Charney win

Dov ex-lawyer’s home run in legal fight for manse

- By JOSH KOSMAN jkosman@nypost.com

Dov Charney’s ex-attorney won a tug-of-war against a hedge fund over the rights to the American Apparel founder’s Los Angeles mansion — and may be poised to collect the proceeds in a bankruptcy sale, The Post has learned.

Charney — who founded the hipster clothing chain in 1989, only to get ousted from the helm in 2014 under a pile of debt and legal woes — filed for personal bankruptcy in March. Under his reorganiza­tion plan, Charney has agreed to abandon his 20-room spread in LA’s Silver Lake neighborho­od, a source close to the situation said.

Zillow lists the hilltop mansion — where Charney still lives as he runs his current company Los Angeles Apparel — as being in preforeclo­sure with a value of $8.4 million. The residence is on the National Register of Historic Places and was made out of concrete to withstand earthquake­s, according to Wikipedia.

A Los Angeles bankruptcy court will hear arguments on Dec. 1 on whether to approve Charney’s plan, which also calls for him to surrender his Arya’s Vintage Closet clothing brand based in Costa Mesa, Calif., the source said.

Charney in 2015 transferre­d the deed of trust on the house to his then-lawyer Keith Fink months after hedge fund Standard General sued him over American Apparel’s bankruptcy. Charney at the time allegedly owed money to Fink for unpaid legal services. Standard General, in turn, sued Fink, saying it was a fraudulent transfer.

In a little-noticed Nov. 18 decision, California Superior Court Judge Maurice Leiter dismissed Standard General’s case, ruling that the house was so deeply “underwater” with debt at the time of the transfer that it couldn’t be considered a sale to satisfy legal expenses.

“As we have advised the court from the very start of this litigation in 2018, Standard General’s claims against Keith Fink were dead on arrival,” Fink attorney Olaf Muller told The Post.

Standard General CEO Soo Kim — who, as The Post previously reported, has been trying to make Charney’s life miserable — will likely appeal the ruling, sources said.

Charney’s current attorneys did not return calls.

 ?? ?? Dov Charney (upper inset) is still living in this LA mansion, but perhaps not for long because his former lawyer, Keith Fink (lower inset), has prevailed in a court battle for the property.
Dov Charney (upper inset) is still living in this LA mansion, but perhaps not for long because his former lawyer, Keith Fink (lower inset), has prevailed in a court battle for the property.

Newspapers in English

Newspapers from United States