Dov Charney’s Net Worth: How Rich is the Ex-CEO of American Apparel?

It was on January 31, 1969, that Dov Charney was born in Quebec, Canada, to artist Sylvia Charney and architect Morris Charney, only to eventually become a household name of sorts. However, as chronicled in Netflix’s ‘Trainwreck: Cult of American Apparel,’ he could not keep up with his own success and soon fell from grace in a way no one could have ever imagined. What’s imperative to note, though, is that he did it all while being dyslexic and having Attention Deficit Hyperactivity Disorder (ADHD), making us wonder more about his overall career.

How Did Dov Charney Make His Money?

Dov Charney established American Apparel Inc. in 1989, initially selling t-shirts while attending Tufts University in Somerville, Massachusetts. Yet by the time 1990 rolled around, he had decided to drop out, borrow $10,000 from his parents, and open up a physical business in South Carolina so as to hone his skills first-hand on the job. As per records, he spent the ensuing few years learning all that there is to know about manufacturing, wholesale, as well as retail before relocating to Los Angeles, California, for good.

It was in the mid-1990s when Dov began observing the consumer market in California, only to open up an actual factory in the city by 1997 because he was determined to make everything in-house. American Apparel’s retail stores across the country followed not long after, and then came the provocative ad campaigns and open ideology against slave labor that gave them an added edge. The brand was always marketed towards “young metropolitan adults,” but apart from the clothes, what also attracted them to it was its unwavering socio-political community standing.

We specify this because American Apparel did not shy away from doing campaigns for immigration reform and same-sex marriages, all the while promoting the fact that every article of clothing was made in good working conditions in Los Angeles, meaning they also showcased that they were against slave labor. That’s how sales went from $12 million in 2001 to double in the next couple of years, and by the time 2006 rolled around, the brand had a total of 140 physical stores across the globe.

In fact, although the recession officially hit in 2008, Dov decided to continue expanding the company to such an extent that it had 281 retail locations in 2009, with hopes to open more in the coming year. Even when there were signs to slow down so as to work alongside the market, the CEO kept pushing because he believed they would come out even more successful on the other side of the tunnel. He was kind of right because the brand reported record sales of $634 million in 2014, albeit at a loss, only for him to still be terminated as Founder-CEO that same year.

Dov has always denied all accusations against him, and since none of them have ever been proven in court, he has managed to continue having a career in the clothing manufacturing industry. In fact, while American Apparel filed for bankruptcy in 2015, he established Los Angeles Apparel in 2016 as another manufacturer, designer, and distributor of clothing in South-Central LA. As if that’s not enough, as the years passed by, he even began working with Ye, formerly known as rapper Kanye West, for his brand Yeezy – it has been reported that Dov printed their controversial ‘White Lives Matter’ shirts in 2023.

Dov Charney’s Earnings and Net Worth

Considering the fact that Dov Charney has been active in the world of clothing, fashion, and manufacturing for over 35 years, one might assume that he has accumulated significant wealth. This was once true because he was undeniably the sole owner-operator of American Apparel until 2006, and even after it was listed on the American Stock Exchange in late 2006, he remained CEO as well as on the Board. Therefore, from what we can tell, he likely made at least $10 million a year when the company was at its best, which even helped him purchase a manor by the name of Garbutt House in the Silver Lake neighborhood for $4.1 million in 2006.

However, following the recession, when Dov’s core business started operating at a loss, his income significantly dwindled too, which he seemingly never really managed to recover from. That’s because even though he launched Los Angeles Apparel in 2016 after being terminated, he still filed for bankruptcy in 2022 owing to alleged substantial debts of nearly $50 million. While Charney was once reportedly worth as much as $700 million, his 2022 bankruptcy filing and subsequent low-profile business efforts suggest his current net worth may be under a million — although this remains speculative, as no updated financial disclosures are publicly available.