Dov Charney American Apparel Page 1
American Apparel may be (temporarily) in the clear after a group of Canadian investors bought $15.2 million worth of company shares last month, but it’s still deep in debt and recovering from losing a whopping $86.3 million in 2010 alone.
Given that the future of his company is bleak at best, it seems counterintuitive that Dov Charney, the company’s chairman, CEO, and principal shareholder, was noticeably absent from American Apparel’s shareholder meeting on Tuesday.
You know what’s not a secret? American Apparel is in serious financial trouble. You know what else is not a secret? Sex sells! Or at least it’s supposed to. Which is why for the past decade or so American Apparel has resorted to hiring nude models in its advertising. The latest ads, for the company’s new line of women’s jeans, are just as porny as the rest of them, but they leave us questioning whether or not the strategy is actually going to work.
American Apparel’s latest financial savior isn’t worried about recent allegations that CEO Dov Charney sexually assaulted a group of his female employees. Michael Serruya, who last week managed to save American Apparel from defaulting on its debt covenants, said he thinks the sexual assault case against Charney is an attempt to take advantage of his bad image.
Dov Charney‘s business is safe again — for now — thanks to a coalition of investors who managed to raise over $15 million to help American Apparel avoid defaulting on its loans. And the leader of that coalition is none other than a man who got his start selling frozen yogurt at a mall north of Toronto.
Given that we’re witnessing the professional and personal undoing of American Apparel head honcho Dov Charney, it’s not surprising that people from his past are coming out of the woodwork. And we’re not just talking about his accusers, we’re also talking about his boarding school classmates.
How many sentences have we written lately that begin with the words “As if Dov Charney didn’t have enough to worry about already …”? Well, as if Dov Charney didn’t have enough to worry about already, it was reported this morning that the clothing company he founded, American Apparel, ended 2010 on a really bad financial note. How bad? Let’s just say in a year, it lost more money than we’ll ever actually see in our lifetimes.
Over the weekend, American Apparel founder Dov Charney gave his flailing clothing company a much needed shot in the arm by way of trading a couple million dollars for a few million shares of stock. Because he’s totally not going to need that money for anything else.
American Apparel has been in trouble for some time now (and we’re not just talking about those sexual abuse allegations which, as of today, just got about four times worse). The business side of things keeps looking more and more dismal. The debt, the delisting scare, the management changes — it’s all just really messy. Looking to stay afloat, the company is now going to give wholesaling a try.
Dov Charney accuser Irene Morales went on The Today Show this morning to discuss her sexual abuse case that is currently on hold. Morales is seeking $250 million in damages from the American Apparel head honcho, who she claims psychologically and sexually abused her as teenager.
A judge in Brooklyn put a temporary halt on the $250 million sexual abuse lawsuit brought against American Apparel founder Dov Charney this week. The judge also ordered a hearing to determine whether or not the case should be tried in court at all.
One of American Apparel‘s biggest investors has made a move that brought the value of the company’s already low-priced stock even lower Reuters reports that billionaire investor Ron Burkle has sold almost two percent of the 6 percent stake he owned in the company.