Sex, bonds, and an American Apparel fall

Sex, money, betrayal: The bizarre brawl between American Apparel and its founder, Dov Charney, has all that and more. But now this tabloid tale is coming down to a seemingly staid bit of finance: The bonds.

For all the back-and-forth over American Apparel, over Charney’s alleged sexual antics, management’s wrath, and the duelling lawsuits that have followed, neither side is in control. Instead, the bondholders are.

That became apparent yesterday, when the company announced a pre-arranged bankruptcy filing.