American Apparel Inc. (AMEX: APP) Chairman and CEO Dov Charney purchased 855,000 shares of stock on Thursday and Friday with a value of around $2.67 million, according to Form 4 filings with the SEC. The move was not only the first time the executive has purchased shares of his own company, but also comes just days after the company struck a refinancing deal to potentially sell shares for $2.00 each.

The teen apparel company was in danger of default not long ago, until it secured $80 million in capital from private equity firm Lion Capital LLP. However, the capital injection came at a high cost that gave the hedge fund the rights (or warrants) to purchase 18% of the company for just $2.00 per share. The price was well below the average trading price of the stock, but investors saw it as a necessary evil.

Some experts are mixed on the true purpose of the insider purchase, however. Some believe that it was a positive sign for the company or a signal to investors that he still has faith. However, others believe that it was a purchase to maintain his ownership stake, which stands at 53.7% after the purchase. Regardless, investors look the news in good heart and sent shares more than 4% higher on the day.

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