This week American Apparel finally submitted second-quarter results after being so late with the filing that the stock exchange threatened to delist them multiple times. With the filing, AA expressed very real fear of going out of business. Sources tell the Post that the company’s latest financial woes — basically, running out of money and not meeting deadlines to pay off debts — are the fault of CEO Dov Charney, who has shunned outside investors in favor of holding on to his 53 percent stake in the company.
Given the retailer’s depressed results and widely recognized brand, “you could say the stock is way undervalued and a lot of people are interested,” according to the source.
Including Ron Burkle, reportedly.
Sources say that the company’s biggest problem is not that it needs to redo its agreements with creditors, but that it needs cash. Rather than let someone who has a lot of that dump a load on American Apparel, Charney would, supposedly, rather “wait it out and is hoping the situation improves.” One of these anonymous folks also told the paper the company’s outlook is “complicated.” Oh. No shit.
Charney charity [NYP]