“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.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty