“I don’t think this is an asset that’s a need-to-have asset for anybody,” said the banker, who’s been talking to would-be buyers. “Everybody’s sitting back and waiting. I’m not sure anybody knows how this plays out. I don’t think this is over anytime soon.”
Ousted founder Charney borrowed nearly $20 million to buy 27.4 million shares of the company, boosting his stake to 43 percent. That puts the former president, chief executive officer and chairman in striking distance of retaking control of the company, but he has to rally support from other shareholders and contend with a poison pill installed to prevent a takeover.
Charney has called for a special shareholders’ meeting in September to rejigger the board and is contesting his firing at arbitration.
The company, meanwhile, is continuing its investigation into Charney, who was fired for misconduct following years of high-profile allegations of sexual harassment from former employees. He has repeatedly denied wrongdoing.
Since Charney was suspended pending termination two weeks ago, American Apparel has said it remains committed to its Made in the USA, sweatshop-free model.
That was called into question in a published report Wednesday, which said one of the company’s largest creditors, Monarch Alternative Capital, was trying to force a sale of the company and shutter the retailer’s Los Angeles factory.
Sources close to the company and to Monarch denied the report. And the source familiar with the creditor’s thinking said, “Monarch supports the Made in America strategy and has never had conversations with American Apparel or others about an outsourcing strategy.”
Another source maintained that Monarch has been working behind the scenes and pushing for the business to take more of a licensing approach.
Monarch is said to own about half of American Apparel’s debt and could eventually play a more prominent role in what happens to the company. Charney has teamed with Standard General, which lent him money to increase his stake, and might find itself squaring off with Monarch.
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye