American Apparel has hovered perilously close to bankruptcy for the past few years but they've always managed to hang on by a thread. Things looked up for the company when it received a much needed $15 million injection from a group of Canadian investors in April. But now those investors are looking to sell their 43.2 million shares, WWD is reporting.
The fact that this latest batch of investors, helmed by financier Michael Serruya (he's responsible for bailing out Jamba Juice in 2009), is ready to pull out just four months after they invested does not bode well for American Apparel and it's notorious CEO Dov Charney. According to WWD, "Today's offering consists of 24.2 million shares issued to the investors in April and another 19 million shares tied to purchase rights held by the group." Charney still controls 47.1 percent of his company's stock, while the group of investors lead by Serruya controls 23.3 percent.
Looks like Charney and Co. need another fat-wallet-ed savior to swoop in asap. Could this be the demise of Dov Charney? Cue the topless ads.