American Apparel CEO raises stake in company

(Reuters) - American Apparel Inc <APP.A> Chief Executive Dov Charney bought 1.8 million shares in the struggling clothing chain, raising his stake in the company to about 54 percent.

According to a regulatory filing, Charney bought the shares for $1.11 per share, or about $2.0 million in cash.

Before the latest deal he held a 51.8 percent stake in the company, according to filings.

The retailer and wholesaler, known for its edgy advertising and brightly colored T-shirts, has been under pressure to revamp its management and put its finances in order as it fights a prolonged sales slump.

In February the company had said that some lenders had extended a credit agreement, but a default could still jeopardize its ability to continue as a going concern.

American Apparel shares had closed at $0.91 on Friday on the American Stock Exchange.

(Reporting by Nivedita Bhattacharjee; Editing by Saumyadeb Chakrabarty)