Dive Brief:

• American Apparel’s board could return founder and ousted CEO Dov Charney to the company, though not as CEO, Bloomberg is reporting.

• Charney is still working at the company as a paid consultant after his ouster nearly four months ago over alleged controversial behavior, including possibly financial improprieties and sexual misconduct.

• Changes to the board after the initial upheaval has garnered some amount of support for Charney. Bringing him back could promote continuity at the company and avoid legal entanglements, sources told Bloomberg.

Dive Insight:

Dov Charney has remained active at the company he founded, despite his high-profile ouster. Though in June his return seemed impossible, changes brought in part by investors and new, more supportive board members have both settled things down for the company financially and led the board to reconsider his return.

Charney has long been controversial in his private conduct as well as in the marketing of his company, and this summer that proved to be too much for the retailer’s board. It looks like that could change, especially in light of the departure of CFO and interim CEO John Luttrell, who reportedly didn’t get along with Charney, though nobody is saying exactly what role he would fill.