March 28 - American Apparel Inc Chief Executive Dov Charney bought 1.8 million shares in the struggling clothing chain, raising his stake in the company to about 54 percent.

Model wearing American Apparel's Spring 2010 collection

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)