Ex American Apparel boss makes comeback bid
Former American Apparel boss Dov Charney, who was ousted over sexual harrasement allegations, could be set to make a come back after reportedly finding an investor to stump up $200m to save the bankrupt retailer.
Should the offer be accepted it would see Charney return to the company he founded in 1986.
American Apparel filed for bankruptcy last October after repeatedly struggling to remain relevant to its millennial audience as competition with fast fashion brands such as H&M and Forever 21 with their cheaper price points and constant cycle of fresh garments continued to heat up.
Charney’s investor’s identity hasn’t been disclosed, but according to the Wall Street Journal people familiar with the situation say it is a privately held company.
Last summer American Apparel announced a plan to turn the brand from ‘chaotic to iconic’ following a six-year long history of declining sales. Speaking at the time chief executive Sue Sheard said “coming back from the brink will require a wholehearted investment in a ‘redemption’ narrative”.
“American Apparel needs to figure out what about them is addictive and then align the meaning of product to the meaning of the brand. At that point American Apparel needs to reach out with some humility and be seen to invest in the customers to counterpoint perceptions of exploitation.”
Should the investment plan be approved a final decision will be made by a judge on 20 January.