News__ A.A. Resuscitated (For now)
CEO of American Apparel, Dov Charney, can finally kick off his boots and relax for a hot minute. According to The Cut, American Apparel lenders at Lion Capital have altered their terms of agreement with the hipster retailers so that they don't have to file for bankruptcy. However, A.A has a lot of work to do to keep their heads out of the water. "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." Sounds easy enough, right?
"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 has been on a slow, downwards spiral since it's stock dwindled from a strong $15 in 2007 to 66 cents this year (guess people are over the square pieces of cotton fabric marketed as "headbands"?) Since the news of Lion Capital's support, A.A.'s stock has bounced back up a few cents to reach a modest $1.43.
American Apparel has also instituted a new advertising campaign which features Dov Charney doing business in bed with his creative directors. Pillow talk while penny pinching? Weird.