In an incentive program to reward key employees, American Apparel has granted 6.5 million shares of company stock to about 70 executives, nonmanagement employees and consultants. The company paid the withholding and payroll taxes for the grants — and in an unconventional move, the cash-poor company financed those payments by selling 1.1 million treasury shares of its common stock to chairman and chief executive officer Dov Charney.
The employee grants were approved by the board on Nov. 26 and the stock sale to Charney was on Wednesday, with both acts divulged in a filing with the Securities and Exchange Commission Thursday.
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"