About 20 shareholders attended the annual meeting of embattled American Apparel Inc. in Los Angeles Tuesday, but Dov Charney, the company’s chairman, chief executive officer and principal shareholder, wasn’t among them.
In response to a WWD query, Charney sent a text message saying he was in Japan on company business. Glenn Weinman, senior vice president and general counsel, presided at the brief meeting, which was closed to the press.
Although Charney’s absence was unusual, his presence was by no means required. Charney holds or controls 54.3 percent of the shares outstanding, and, in the company’s definitive proxy, had indicated his intention to vote in the affirmative on all company proposals, including provisions that would increase the number of shares, prevent his stake from being diluted and reduce the exercise price of Lion Capital warrants. These details had been hammered out in previous rounds of refinancing but required shareholder approval.
Whether he did so in person or through a proxy was a technicality, for purposes of corporate governance. Still official results of the votes weren’t available immediately after the meeting.
Following an earlier rescue by Lion, a group of investors led by Canadian financier Michael Serruya bailed out American Apparel in April by buying 15.8 million shares at 90 cents each, giving the company $14.2 million to shore up its finances and the investors a 27 percent discount on the company’s stock at the time.
The investors also received warrants for the right to purchase an additional 27.4 million shares at 90 cents apiece within 180 days. It is unclear when and if those additional investments will roll in since the stock has traded below the 90-cent mark during seven days this month.
“I’m confident the warrants will be exercised and that will give the company an additional $30 million,” Serruya told WWD in April. “That means American Apparel will have $45 million in cash to open new stores and for capital expenditures and to pay off debt.”
The company’s shares fell 4 cents, or 4 percent, to 96 cents Tuesday ahead of the company’s annual meeting as the S&P Retail Index had its best day in almost seven months. It gained 11.74 points, or 2.3 percent, to 519.39 as the Dow Jones Industrial Average gained 109.63 points, or 0.9 percent, to land at 12,190.01.
Although lifted by renewed optimism about the severity of the Greek debt crisis, specialty retailers were among the big winners on Wall Street Tuesday. Among the retailers gaining strongly were Destination Maternity Corp., up 8.8 percent to $18.77; Ann Inc., 4.4 percent to $27.56; Guess Inc., 4 percent to $43.24, and Limited Brands Inc., 3.1 percent to $37.48.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)