Dov Charney, you in danger girl!
The New York Post is reporting that Dov’s American Apparel empire is struggling to stay afloat depsite the amount of people submitting their derriere to become the next AA butt model!
In fact the sexually explicit company was and still is desperately trying to avoid bankruptcy! Investment group Lion Capital has been helping them out in the financial department, and as a result Dov had to give up a large equity stake to the private equity firm.
Lion Capital has also put a tight grip on the company’s spending, which Dov is not too happy about. And neither are investors!
On Friday, American Apparel’s shares dropped 17%, with total 4th quarter profits plummeting 23%. Also, Dov & Co. haven’t been able to give investors an outlook of what to expect in 2010.
Mix that all together and many of those pumping money into the company bolted.
Can’t say we blame them!
So what does this mean for American Apparel?
Who knows, but it looks like hipsters are going to have to buy their hooded bathing suits and unmarked shirts elsewhere before too long!
[Image via AP Images.]
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