Dov Charney swears American Apparel isn't going bankrupt
By David WarnerApril 1st, 2011, 1:15 pmComments (7)American Apparel hasn't been selling enough lace leotards to pay the bills lately, and bankrupcy is around the corner. According to financial reports and CEO Dov Charney, the company is in heaps of debt, lost close to ninety million in 2010, and has thirteen lawsuits to deal with. They have less than ten-million dollars to their name, which to you and me may seem like plenty, but American Apparel is a big company with a lot of hoodies and body suits to make and ten mil doesn't cut it.
Charney has assured anyone who really cares and is willing to believe him that bankrupcy isn't imminent, or even likely — he calculates the odds of going broke at "not even a one-in-one-thousand chance" — though I'm certain even he doesn't believe that. Anyone with basic adding and subtracting skills can see that his company is in serious trouble. Well, Dov, if the T-shirt business is too tough, you could always round up all those photographers and models and move on to your true calling: books of (not so) tasteful nudes.
Commentarium (7 Comments)
I feel sorry for him.
I don't.
He looks like a muppet. He's gross though, and muppets are cute. Sorry muppets.
The ones to feel sorry for are the all those who will lose their jobs through no fault of their own.
The company went morally bankrupt a long time ago. Now they are looking forward to the next chapter in the company's history, Chapter 11.
And while I am not a securities lawyer (nor do I play one on TV), given these sets of financials, telling the world that there is only a 1 in a 1000 chance of bankruptcy is a great way of getting yourself sued for securities fraud.
They were the fast expanding company in history and their biggest selling item was a plain tee shirt. Not surprising they are having troubles.