American Apparel Founder Hires Advisers to Take Back Retailer (Report)
Dov Charney refuses to give up.
American Apparel founder Dov Charney's quest to win back the ailing retailer continues.
The Los Angeles Times reports that the controversial former CEO is working with financial advisory firm Cardinal Advisors to evaluate "strategic alternatives" for the L.A.-based company, which has gone through a number of lawsuits and seen a decline in sales since the ousting of Charney last year.
In a statement to the newspaper, American Apparel said Charney has indicated interest in buying back the company but confirms that "there is currently no transaction for the board to consider."
Despite CEO Paula Schneider's efforts to make the brand profitable again — from implementing cost-cutting initiatives (shutting down stores and laying off staff) to selling $10 million in stock — it still wasn't enough. American Apparel filed for Chapter 11 bankruptcy in October.
However, Schneider remains hopeful. She stated at the time of the bankruptcy announcement that the brand's overhaul will help "refocus our business efforts on the execution of our turnaround strategy as we look to create new and relevant products, launch new design and merchandising initiatives, invest in new stores, grow our e-commerce business and create captivating new marketing campaigns that will help drive our business forward."