A group of Canadian investors led by Michael Serruya, who in 2009 bailed out everyone's favorite overpriced could-be-tastier smoothie stand Jamba Juice, is bailing out everyone's favorite overpriced could-be-tastier clothing store American Apparel. The deal gives American Apparel $15 million up front, with the option to invest up to $28 million more over the next six months. CEO Dov Charney, whose company was previously saved from bankruptcy with an $80 million loan, thinks that this investment signifies that AA is just beginning to come into its truest greatness. "People didn't believe in Amazon for many years, but it ended up changing the way Americans shop," he told the Post.
"People didn't believe in Apple — they thought it was a fringe computer company," Charney added. "But it ended up changing the way people listen to music, and changing what daily life feels like worldwide."
American Apparel is thought to have lost $50 million last year just due to the forced layoff of factory workers, so you can see where that $80 million wouldn't go so far. Meanwhile, Charney has also taken a lot of heat for his purported money wasting and control-freak management style. But maybe he is on the cusp of bringing significant impact to the daily life of people. Like when the Today show covered the recent sexual harassment suits brought against him, which impacted us and millions of other folks for at least part of the morning.