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.
