“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.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews