Dov Charney Denies Company’s Financial Problems
Let’s be honest: American Apparel is, in all likelihood, going under. Their stock took another 21.3 percent nosedive today, landing at 81 cents — compared to a $15 high in 2007, and Crain’s posits that the brand will have to close at least a third of their New York stores. The NYSE is threatening to delist them, their accounting firm quit after discovering “material weaknesses in internal control”, and now they’re being sued by their investors. Fashionista gives them a slightly kinder outlook, noting that “if Charney and co. are forced to file for bankruptcy protection, someone will swoop in and save them.” Basically, the only person who doesn’t know what’s going on appears to be Dov Charney himself. In an absolutely ridiculous interview with WWD, Charney “vigorously” denied that the company is in any trouble.
On the company’s future:
“There’s a chance that you get hit by a car. There’s a chance you get a disease. But they are chances. But there’s also a likelihood that the [financial] covenant will be worked out, as it has in the past.”
On possibly being replaced:
“How do you know that I’m not running the business as sharp as a tack, given the circumstances I’ve been given? Who’s to say that I’m doing such a bad job?”
On his business model:
“We are paying $10 to $12 an hour. It’s amazing that I can even break even. That’s the real story here.”
[via WWD.]
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