While that sets up a potentially dangerous cascade, a source close to the company said that bankruptcy is “the furthest thing” from a worry at this point. That’s because, the source said, American Apparel is “very confident with its relationship with all its lenders.”
Mayer and the rest of the board suspended Charney with the intent to terminate his employment, alleging that the ceo “engaged in willful misconduct that has materially injured the financial condition and business reputation of the company.”
Charney was accused of not preventing an employee from “creating and maintaining false, defamatory and impersonating blog posts about former American Apparel employees” and of paying significant severance packages to former employees to shield himself from liability for misconduct.
The corner-office shake-up, which may have triggered a credit default, sent the company into discussions with its lenders.
Charney is contesting his termination at arbitration, and his lawyers are said to claim he is due $23 million to $25 million for unfair dismissal.
The turmoil has made for a busy time for American Apparel in the stock market. Shares of the company rose 9.4 percent to 74 cents Thursday, with about 40.9 million shares trading hands, more than 10 times the daily average for the past three months. That left the company with a market capitalization of $129.1 million.
Etro’s show, titled “The Tree of Life,” was a celebration of the house’s 50th anniversary. “My father founded the company in 1968, which was the year of counterculture and psychedelia. It’s really a show that celebrates that and the paisley design of India and its origin,” said Veronica Etro. #wwdfashion #mfw #ss18 (📷: @delphineachard)
For @msgm’s spring 2018 show, creative director @massimogiorgetti said “Words, sounds, colors. Synthesis and therapy of a collection,” were the inspirations behind the collection, showing today. Read the rest of Milan spring 2018 inspirations on WWD.com. #mfw #wwdfashion #ss18
For her first solo album in over 10 years, Fergie tapped Carine Roitfeld, Mert and Marcus, Giovanni Bianco and more to create a fashion-focused video approach for the record, Double Dutchess. "Giovanni really helped me get back in touch with my tomboy side, my hardside," said the singer. #wwdeye #wwdfashion ( : @slovekinpics)
“Volumes and Graphic Art of the Nineties are the main inspirations of the new Aquilano.Rimondi SS 2018 collection,” said cocreative directors Tommaso Aquilano and Roberto Rimondi. #wwdfashion #mfw #ss18