More thoughts on American Apparel

As a followup to my recent post on American Apparel, I offer the following comment from RetailWire. The reason for the second discussion was the maneuvering between the CEO, the board and the outside investors to see who takes control of the company. I find any scenario where Dov Charney re-emerges in control to be baffling:

It’s hard to imagine how Mr. Charney’s reported (and recorded) antics were tolerated for years, until the board apparently lost patience with his results — not with his behavior. Now the maneuvering between Mr. Charney, his investors and the board continues to threaten a company that was on shaky ground in the first place. American Apparel was already bleeding consumer relevance fast.

It’s equally hard to imagine how any company directors — public or private — can allow the sort of shenanigans that reportedly took place at American Apparel, and put the company’s exposure to lawsuits at grave risk. It’s just plain awful corporate governance, and to see a potential outcome where Mr. Charney is running the company again is baffling.

Advertisements

0 Responses to “More thoughts on American Apparel”



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s





%d bloggers like this: