“Charney’s Fools” Within American Apparel

This entire thing is moronic. Anyone with half a brain realizes it was Dov himself who brought the company to the brink of bankruptcy not once but twice.  Fashion visionary? Yes. Electric personality? Yup. Competent manager? Without a doubt no. All one needs to do is look at the results of the company over the last decade for proof. He did that, he ran it. He was CEO, no one else.

In fact it was Charney who “drained” the company of resources with his incompetence and his behavior (that lead to legal troubles and settlements). He drained it so much twice he had to go hat in hand first to Lion Capital and then the Standard in order to save the company from liquidation. For those who may be confused and clearly someone is very much so, that would have meant debtors would have bought/auctioned the brand name, shut down the US facilities and then produced the clothes overseas. So unless Mr. Anonymous was going to move, they would have been looking at an unemployment check. Standard, with its equity stake, has committed not to do that and has backed that to date.

What is the problem with what they have done?

Further, if Charney was so committed to the brand and the workers, why isn’t he speaking out to quell this nonsense that can do nothing but distract employees and management and serves absolutely no positive purpose?  The company is by no means on solid footing. It is getting there but make no mistake,  is not there yet. Does he want a revolt inside? Does he want dysfunction at all levels? Even he has to realize Standard is the last man standing backing this thing. If it goes south from here, it is shut the doors and sell off the assets and good luck finding work folks. Why is he being silent? All it would take is a public show of support from him for Standard and management.  Why nothing? Is he behind it?

The question needs asking…..

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Disclosure: The information in this post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or ...

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