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Dov Charney, the ousted chief executive of American Apparel, boosted his holdings in the company to 43%, raising the stakes in the battle for control of the company. WSJ's Suzanne Kapner reports on the News Hub with Sara Murray.

American Apparel has adopted a one-year shareholder rights plan a day after its ousted CEO and founder Dov Charney made a bid to increase his control of the clothing chain. The Los Angeles-based retailer said early Saturday that the move, made by a special committee of its board of directors, is designed to limit the ability of any person or group, including Charney, "to seize control of the company without appropriately compensating all American Apparel stockholders.

American Apparel CEO Dov Charney was ousted after he reportedly misused company money and allowed the posting of an ex-employee's nude photos online.