Dive Brief:

• London-based investment firm Lion Capital LLP, which has been a consistent supporter of embattled former CEO Dov Charney, has elected to nominate a board member.  

• The firm named food business executive Robert Mintz, a childhood friend of Charney’s. Lion controls 12% of American Apparel stock and has rights to name two members to the board.

• The firm last month sold a $10 million loan to fellow investor Standard General LP that allowed for better terms and has saved the retailer money.

Dive Insight:

Lion Capital has been swooping in from time to time to rescue American Apparel since 2009, and has been friendly to founder and ousted CEO Dov Charney despite allegations against him — which he continues to maintain are unfounded.

The presence of Mintz on the board could be a way to signal support for Charney’s return, or a conduit to help ensure that Charney’s priorities are met by the board. Charney is said to be committed to keeping the business Stateside and providing its workers with pay and conditions superior to those of other apparel retailers, whether or not he returns as CEO.