Changes are afoot at American Apparel, hopefully for the better. For one, they e-mailed us today about the ad you see here called "In Bed with the Boss," which depicts the company's creative directors in bed with CEO Dov Charney, which is apparently his preferred method of conducting business. It might have helped distance the brand from their predictably raunchy ad images of girls in skimpy leotards bending over or contorting their legs every which way had it been added to the brand's online ad archive and appeared in more than one magazine aside from Gentlewoman. But maybe they'll do more of this down-to-earth, chilling-with-the-family-pet sort of advertising to help soften its image in the face of immense financial crisis.
As for those money woes, things are looking up a little bit! American Apparel's lenders at Lion Capital have agreed to alter the terms of their agreement with the retailer so that they don't have to file bankruptcy. Lion Capital partner Lyndon Lea remains upbeat about investing in a company that's had such highly public difficulty paying off its debts. "Lion Capital has enormous admiration for both American Apparel and its founder, Dov Charney," he said. "We are working together with Dov to realign the capital structure of American Apparel to support a number of key initiatives within the business, including the hiring of several new senior executives." American Apparel CEO Charney continues to defend his position:
“Retail is hard right now,” he said. “I’m not alone in this. You have to work for every dollar, you have to work on the merchandise, make sure the product mix is perfect and the allocation is right. It’s a tough market right now.”
American Apparel's stock rose 16.3 percent to $1.43 on Friday thanks to the deal. The stock peaked at $15 in December of 2007 and plummeted to 66 cents this year. Under the terms of the new agreement with Lion, American Apparel is not completely out of the woods. They still have to do things to prove they are a functional retail establishment worthy of this aid to its survival, like, oh, sell merchandise. The company must turn a pre-tax profit of $20 million over the 12 months ending January 31, and by September 2013 must rake in $80 million.
So that means one of this company's huge financial concerns is somewhat ameliorated. However, they still have to deal with possibly being de-listed from the stock exchange, those class action lawsuits, and probably major self-esteem issues.
Most Viewed Stories
Rob Kardashian and Blac Chyna Reportedly Broke Up
Donald Trump Spent the Morning After the Debate Fat-Shaming Miss Universe, Again
Hillary Clinton’s Sickest Debate Burns
It’s Finally Possible to Understand What Happened to Amanda Knox
Ask a Boss: My Co-worker Wants Everyone to Call Her Boyfriend Her ‘Master’!
2009 Called — It Wants Its Vogue-Versus-Bloggers Fight Back.
Former Miss Universe Becomes U.S. Citizen So She Can Vote Against Trump
22 Intimate Lost Photos of Marilyn Monroe
Area Woman Interrupted by Man 25 Times in 26 Minutes
Our Scowling Hero Breaks a Smile
From Our Partners
powered by PubExchange
Latest News from The CutSerena Williams Refuses to ‘Stay Silent’ About Racial Inequality
“It’s not how far we have come but how much further still we have to go.”Young Girl Calls for End to Police Brutality in Heartbreaking Speech
It’s a devastating plea.The Y Has Returned in a Big Way to YSL
This is what Saint Laurent looks like post-Hedi.The Most Dramatic Backstage Photos You’ll See All Fashion Month
Preview the book Landon Nordeman: Out of Fashion.Even 100 Years Ago, People Were Worried About Technology Ruining Relationships
An old cartoon echoes some very modern anxieties.This Lipstick Was Designed by a Woman Who Can See 100 Million Colors
Maureen Seberg can see so many more colors than you.Brad Pitt Skipping Premiere to Focus on ‘Family Situation’
The actor may be gearing up to tell his side of the story in the tabloids this week.Please Help Wesley Snipes Find His Leather Jacket
He will be cold without it.The President of NARAL on What Abortion Means in This Election
It signals how the candidates feel about women.YogaToes Cured My Lifelong Fear of Bunions
The stretch feels like a backbend—but for your feet.
She’s the first woman to land on Forbes’s list of the highest-paid comedians.The Very Uncomfortable Experience of Rewatching Election in 2016
An ambitious woman and the angry men who want to stop her.Ivanka Trump Is Great for Women, Says Man Married to Ivanka Trump
Ivanka Trump is the perfect person to handle “women’s issues,” according to her husband.World’s First 3-Parent Baby Is a Healthy Boy
He was born in Mexico to Jordanian parents.Nation Recovers From Post-Debate Hangover With Mary J. Blige and Hillary Clinton Memes
“What will you do to fix the national epidemic of hateration in this dancerie?”The Hottest Party of the Year Is This 6-Year-Old’s Drake-Themed Birthday Party
It has everything: an OVO cake, Drake balloons, fake money.See Haute Couture’s Most Romantic Looks
Intricate pieces, out for a stroll around Paris.Rob Kardashian and Blac Chyna Reportedly Broke Up
TMZ reports that all the baby-shower drama stems from a breakup.Fashion Bloggers Do Not Deserve This Backlash
Neiman Marcus jumps on Vogue’s bandwagon and blames social media for declining sales.6 Hip-hop Influencers Wearing the Season’s Hottest Puffers
Missy Elliott’s “The Rain (Supa Dupa Fly)” look is back.