The company is trying to pull off a turnaround under new management appointed by the hedge fund that now controls it. But according to internal documents seen by BuzzFeed News, sales are still falling.
Paula Schneider told staff today that almost 2% of the company’s staff, about 180 people, will lose their jobs. Her memo noted the failings of “previous management,” which oversaw more than $300 million in losses over five years.
Let’s go with the nylon disco shorts. In silver.
The retailer modified a media policy last week after it was accused of “silencing” employees, according to an internal email obtained by BuzzFeed News.
The $10.4 million spent on the investigation is high given American Apparel had only $8.3 million in cash as of Dec. 31.
BuzzFeed News exclusive: American Apparel employees have filed two complaints with the National Labor Relations Board, one alleging intimidation of workers, and another of a ban on speaking to the press. Update: A third complaint was filed late Friday.
Dov Charney appealed to more than 300 current and former textile workers this past Saturday in a backyard meeting in South Central Los Angeles. The American Apparel founder was officially fired in December but refuses to walk away from the company he created in the late ’90s.
The company’s new CEO, Paula Schneider, recently responded to a series of mass emails sent to employees by an anonymous insider. The emails were critical of American Apparel’s new management and the hedge fund backing the company.
Dov Charney, the founder of American Apparel, told Bloomberg News that he’s “down to” his last $100,000 and sleeping on a friend’s couch. How is that possible?
Ousted CEO Dov Charney told Bloomberg News that he’s been living on the Lower East Side on a friend’s couch. He also plans to “sue everyone,” as per the report. Updated with comment from Standard General.
More than 30 employees signed a letter to American Apparel’s board in support of Dov Charney, who was officially fired Dec. 16. The letter, in full, is below.
The decision to fully boot Charney, who was still working for American Apparel as a paid consultant, comes after an internal investigation. The board suspended him earlier this year.
Nothing says, “Get a watch, pal!” like, you know, a watch.
The retailer’s board will mostly be replaced as Standard General lends up to $25 million to the company. There’s a still a chance Charney could return as CEO.
“You’re on your own, buh-bye, thank you,” Charney said when contacted by BuzzFeed for comment.
The American Apparel founder is sacrificing any future involvement with the company in return for ensuring that new management stays true to the core principles on which it was founded.
The company said the image was posted by an employee who “was born after the tragedy and was unaware of the event.”
It doesn’t look as though Charney will be returning as the CEO of American Apparel any time soon, but he’s found a way to get some of what he wants.
While an American Apparel employee, I spoke out publicly against the company’s ethics and employment practices. Then I got a call from Charney.
Corporate boards will typically tolerate a founder’s eccentricities, and even bad behavior, as long as the business is performing well. But as performance declines, so too does tolerance.
The page appears to have been made by current or former employees. They also can’t spell the new CEO’s name.
Charney, who holds a roughly 27% stake in American Apparel, was approached by supporters after his termination and is discussing board and management changes with them, according to a regulatory filing today.
A source close to Charney says his handpicked American Apparel board turned on him purely for financial reasons, and that they have known about the other factors cited in his termination letter for a long time. The source’s grievances were first aired on Whisper.
Sources dismiss reports the company is up for sale. They say the newly surfaced video of Dov Charney dancing nude with a potential employee wasn’t part of the board’s decision.
Updated: The retailer’s board replaced Charney as chairman and said it intends to fire him “for cause.” A spokesperson declined to comment; Charney won’t talk.
But spoiler alert: It’s only shown on skinny models.
Plus the biggest party schools in every state in the U.S., 25 stores and what they should actually be named, and the never-ending wonders of extreme makeup techniques.
If you don’t make the model dance when shopping online, you’re doing it wrong.
Oren Safdie, a 48-year-old playwright, premiered the play Unseamly in Montreal last month. He tells BuzzFeed, “All my plays touch on people I know in some ways.” Update: American Apparel notes the play is a work of fiction and that CEO Dov Charney loves his cousin.
The clothing company, which posted another annual loss Thursday, said it received a letter from the NYSE saying it’s “not in compliance with the continued listing standards of the Exchange.” It has to submit a plan for how it plans to fix things by March 21.