|American Apparel location in Cincinnati, Ohio.|
A famed clothing company is filing for bankruptcy today. It's a sign that shoppers aren't finding any interest in American Apparel. I couldn't be any more happier of the news.
I've never bought anything from that company. I've never applied for a job there. I've always had a feeling that they would use discriminating tactics in hiring. AA founder's Dov Charney, a Canadian-American business mogul was fired out the cannon after he was caught up in a sexual harassment and discrimination scandal.
The company once held a gold standard of hiring practice. They didn't want any "trashy Black women" ever hired at their stores. Watch "the ones" who may shoplift from the store. Look for the "right types of customers". You know "the ones" who got money.
AA was having that going on at their stores.
So now the company will focus on trying to bring back customers. AA want to restart the company under Standard General, an American based hedge firm.
The company, which has seen spiraling sales and an ever-sinking stock price since the management upheaval began, proposed a plan that would keep its 130 U.S. stores open and maintain its Los Angeles manufacturing operation, the Times reported. No layoffs were mentioned in the Chapter 11 petition, which was approved by American Apparel’s board, and filed in Delaware, the newspaper said. The plan requires approval by the federal bankruptcy court, it added.
American Apparel’s shares closed at 11 cents each last week.
American Apparel’s brand recognition has far exceeded its sales numbers over the past decade with its “Made in the USA” ethos, provocative advertising, and colorful, scandal-ridden founder Dov Charney.
Charney didn't go quietly. He mounted a civil war within the board.
|Notice something about this picture!|
American Apparel saw new legal fees, a workforce moving towards unionization, plummeting sales, and wider losses. It announced layoffs earlier this year, as well as store closures. Questions have been swirling around the company’s ability to pay a major interest payment later this month.
The bankruptcy, if approved, will mean just that. It will also wipe out Charney’s stake in the company, according to the Los Angeles Times. Standard General and other creditors will gain full control of American Apparel if the plan is approved.
“Not having the nuisance lawsuits, not having this massive debt, these are all extremely important things for the company to thrive,” Schneider told the Times in a Sunday interview.