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.


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