Canadian investors attempt to save a failing American Apparel
American Apparel has been in a lot of hot water in the past, from their CEO’s shenanigans (if you can call alleged sexual harassment that) to their myriad financial difficulties. But thanks to a group of Canadian investors, the company seems safe for the time being. The investors, led by Delavaco Capital and Michael Serruya (a co-founder of ice cream manufacturer Cool Brands), are giving the beleaguered company $14.2-million up front for shares with approximately $27-million in warrants to buy additional stock later. Sure, restructuring debt and focusing on a return to profitability sounds like a smart business decision, but we’d like to note that the combination of an ice pops purveyor and a company with notoriously porn-inspired ad campaigns sounds like a match made in heaven.
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American Apparel has been in a lot of hot water in the past, from their CEO’s shenanigans (if you can call alleged sexual harassment that) to their myriad financial difficulties. But thanks to a group of Canadian investors, the company seems safe for the time being. The investors, led by Delavaco Capital and Michael Serruya (a co-founder of ice cream manufacturer Cool Brands), are giving the beleaguered company $14.2-million up front for shares with approximately $27-million in warrants to buy additional stock later. Sure, restructuring debt and focusing on a return to profitability sounds like a smart business decision, but we’d like to note that the combination of an ice pops purveyor and a company with notoriously porn-inspired ad campaigns sounds like a match made in heaven.
Canadian investors rescue American Apparel [Globe and Mail]){kind=link}
In addition to re-structuring dept, American Appeal might also consider employing someone other than depressed, anemic, blank-eyed, filthy ‘models’ in their marketing campaigns. It’s sad and disgusting.
I really wish people would just let American Apparel die. It’s doing poorly for a myriad of good reasons.
They don’t try to make a virtue of their unsustainable “downtown LA” business model. I agree to let it – and it’s smug followers – die.
Well, at the very least there’ll be an audit and the truth will come out – there’s already plenty of evidence as to their “social” business practices.
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