American Apparel's numerous scandals relating to its advertisements and fishy-seeming employee dress code and retention policies haven't necessarily hurt the company in the past. And that's hardly its biggest concern now — as it fails to meet obligations to creditors, its stock has tumbled to the single digits, and it faces the possibility of being delisted from the stock exchange. MSNBC reports:
“American Apparel is unique because they’re on the cusp of a total collapse,” said Howard Davidowitz, chairman of the retail consulting and investment banking firm Davidowitz & Associates. “You don’t have many people out there breaching their loan covenants. They are not a going-forward company until they can resolve the financial issues.”
However CEO Dov Charney is going about business as though unconcerned with his financial mess.
“Our company in the past has been through these types of issues before and it’s never really presented us with any particular difficulties in running our business,” he said in a conference call with analysts last month after the company reported a $17.6 million quarterly operating loss on sales of $121.8 million.
The company hasn't come up with a plan to fulfill its obligations as a debtor, but why rush when serious financial pickles haven't hindered them in the past? As another analyst puts it: "They’ve got a very differentiated brand and it still resonates with customers." And Davidowitz may think the company is on the "cusp of a total collapse," but he seems to think they'll be able to avoid hitting rock bottom. "I think it’s amazing that they’ve been able to come to this point and, like, have this degree of success," he says. Agreed. Who actually buys the tiny ass-cheek–exposing shiny underwear-shorts, anyway?
Most Viewed Stories
How Angelina Jolie Won the First Big Battle in Her Divorce
25 Famous Women on Being Alone
It’s Time to Get Over Your White Feelings and Start Taking Action for Black Lives
22 Intimate Lost Photos of Marilyn Monroe
Everything We Know About Brad Pitt’s Plane Incident
Jaden Smith on the Many Subtle Flavors of Water
Taylor Swift’s Squad Begged Kim Kardashian for Mercy
Gigi Hadid Fought Back Against a Creepy Stranger Who Grabbed Her
The 6 Best Denim Shops on Etsy
Beyoncé and Tina Knowles Did A Normal Mother/Daughter Thing
From Our Partners
powered by PubExchange
Latest News from The CutThe Newsroom Meets Mad Men in the First Trailer for Amazon’s Good Girls Revolt
Revolt away, girls.Arrest Made in Pippa Middleton iCloud Photo Hack
The hacker reportedly offered The Sun and The Daily Mail 3,000 pictures for a large sum of money.The National Nightmare Is Over: Kim Kardashian Will Vote for Hillary
She’s with her.Dolce & Gabbana Was an Italian Lovefest
The theme was Tropico Italiano.Watch the Salvatore Ferragamo Livestream
Enjoy!Adam Levine and Behati Prinsloo Unveiled Their Baby on Instagram
Her name is Dusty Rose Levine. Awwww.Beyoncé and Tina Knowles Did A Normal Mother/Daughter Thing
Houston’s Solid Gold Beauty Supply received the Queen Bey herself.Brad Pitt Probably Won’t Face Prosecution for Child Abuse
The Brangelina Divorce Machine marches on.North West Is a Pretty Great Flower Girl
Brides, prepared to be upstaged.The Kids From Stranger Things Are Hanging Out With Nicolas Ghesquière
Millie Bobby Brown, Caleb McLaughlin, and Gaten Matarazzo hit up Louis Vuitton’s HQ in Paris.
Bring. On. The Female. Detectives.Kylie Jenner’s Getting Sucked Into Tyga’s Debt Problems
She’ll have to answer questions under oath in the latest lawsuit against him.Lauren Hutton and Gigi Hadid Make the Best Intergenerational Model Pair
It was a major moment.Your Basement Gym Is No Match for These $10 Million Wellness Amenities
The two superstar brokers of Million Dollar Listing New York fame discuss.The NFL Is Taking Steps to Recruit More Women
It’s part of a major push for gender equality.Obsessively Testing the Best White Jeans to Wear All Year Round
When it comes to white denim, the only rule is that it should flatter you.Hotel Counts Sensual Framed Photos of Jeff Goldblum Among Its Amenities
A true luxury.The Cabal of Fabulous Rich Ladies Who Built Gustav Klimt’s Career
Their stories and portraits are featured in a new exhibit at Neue Galerie New York.The Chanel No.5 Launch Party Was the No. 1 Place to Be in L.A. Last Night
It doesn’t get any better than Nas and Chanel bags.An Uber Operator Allegedly Laughed at a Man for Calling to Report a Sexual Assault
The driver has since been permanently banned.