So, not sure if you’d heard, but American Apparel hasn’t been doing so well financially over the past few years. Somehow, though, despite the fact that the company has been tangled up in millions of dollars in debt that is only increasing, CEO Dov Charney raked in almost twice as much money in 2011 than he had the year before.
Carey Mulligan Got Married in Prada… and Pink Wellies: Raaain on your wedding day… will force you to wear galoshes. Carey Mulligan eschewed bespoke Christian Louboutin blue-soled bridal pumps, opting for a pair of pink Wellies due to inclement weather. {Fabsugar UK}
Vena Cava Talks LF USA Partnership, Cat Food: The folks over at Refinery 29 sat down with Vena Cava designers Sophie Buhai and Lisa Maycock to talk about how LF USA saved their brand, and future plans for their label, which could include cat food. {Refinery 29}
Lady Grantham Lost Her Luggage: The Downton Abbey star says that on her way to the premiere of her new movie, Cheerful for the Wedding, her luggage (which included her dress for the event) got lost. Thankfully, Project Runway alum Daniel Vosovic was on hand to lend Ms. McGovern an LBD for the occasion. {Page Six}
Name: Nancy Won Occupation: Writer What are you currently listening to? Grimes What would you never be caught wearing? Leggings as pants. That’s my ultimate fashion pet peeve! What’s your motto? “Be Real. Keep it real.”
Name: Edwin Tetteh Occupation: Student, Sales Associate How would you describe your style? It varies. I like thrifting a lot and just putting pieces together from all over. What was the last song you listened to? Never Been Pt. 2 by Wiz Khalifa. What would you never be caught wearing? Leggings. Leggings on guys…
Name: Diane Age: 23 Occupation: Journalist What was the last thing you bought? Some tights from American Apparel. What are you currently obsessed with? Big hats. What’s the most random thing in your bag right now? A coin purse without any coins in it.
Kris Humphries Strips Down to His Skivvies for WestEast Magazine: There are one too many crotch shots in the Nets baller’s spread for the mag’s upcoming issue. Click for pics if you’re into that kind of thing. {Hollywood Life}
Blue Ivy Carter Already Has Swag: Jay-Z posted a photo on his Life+Times website of three-month-old baby Blue’s white Adidas x Jeremy Scott ‘Wings’ sneakers. The caption? “Blue’s first flight.” Awwww….{Life+Times}
Banana Republic Unveils Holiday 2012 Offerings: It’s only just starting to get warm, but we’re loving Banana Republic’s luxe cold weather offerings. Is it too early to start our fall/winter wishlists? {Fabsugar}
Despite the fact that his company’s been on the brink of bankruptcy for some time–and never mind those pesky sexual harassment accusations –Dov Charney has just been signed to another three-year contract as CEO with American Apparel, according to WWD.
Even with the $80 million lifeline American Apparel recently received from George Soros-backed Crystal Financial LLC and and Salus Capital Partners LLC, American Apparel may still be destined for bankruptcy because that deal came with a high interest rate of 9.5%, adding to the company’s already crippling debt. (They owe a whopping $116 million to London-based Lion Capital, at an interest rate of 18% per year.) Ouch.
So it’s somewhat surprising to learn that Charney is still raking it in:
Kim Kardashian Gets a Little Messy: This is definitely not the kind of flower flour girls like receiving. After spending probably three hours in hair and makeup, poor Kimmy K was flour-bombed (think pie-d before the ingredients are mixed) by some disgruntled onlooker at her fragrance release event. Turns out that suspected culprit PETA was in fact not responsible for this half-baked (hehe) sabotage– but a rep made sure to tell TMZ that they were pretty pleased just the same. {Styleite, TMZ}
Dov Charney is An ‘Innocent’ Man: Could 2012 be the year of Dov Charney’s comeback? After being on the constant brink of bankruptcy, American Apparel’s founder and CEO can say adieu to another legal hurdle. A Brooklyn judge has dismissed a lawsuit brought on by a former employee last year claiming that Charney had used her as a “sex slave.” {HuffPo}
American Idol Becoming Fashion Forward: Following the announcement that Tommy Hilfiger will be the reality show’s new “style advisor,” it’s been revealed that American Idol will be releasing its new ‘Authentic Icon’ clothing line at Kohl’s in April – also home to AI judge Jennifer Lopez’s own clothing range. It seems even Idol alum (and Smash star) Katherine McPhee is getting in on the fash game: She was reportedly seen sprinting to the Conde Nast building to “meet Miss Anna Wintour” on Wednesday– though we’re betting there was nary a mention of ‘Kohl’s’ in that meeting. {NY Mag, NY Post}
American Apparel may have just gotten another credit lifeline, but that doesn’t neccesarily mean the brand’s been saved.
Earlier this week, American Apparel got an $80 million lifeline from George Soros-backed Crystal Financial LLC and and Salus Capital Partners LLC. The company has managed to consistently avoid bankruptcy with these sort of 11th hour cash injections and loans; and while they may be buying time, retail analysts say it’s not enough to save the company, which is still over $100 million in debt and has $185 million in excess inventories. According to WWD, their new deal comes with a high interest rate of 9.5%, so that debt’s not going to go away any time soon.
The trade asked several retail industry insiders to give their perspectives on Charney and co.’s current situation. Most of them aren’t very optimistic.
How American Apparel manages to receive huge amounts of capital from investors seemingly every year, yet still remain on the edge of bankruptcy, is a mystery we’ll never be able to solve. Last year, as you may recall, the company was spared bankruptcy just in the nick of time by a group of Canadian investors who supplied Dov Charney & co. with a $15 million cash injection, with the option to receive $28 million over six months. This was a little less than a year ago and evidently, the company is already strapped for cash again, and, of course, there’s an investment firm ready to give them lots of it. $80 million in credit, to be exact.
The New York Post is reporting that a firm backed by 81-year-old billionaire George Soros (left) intends to extend a nearly $80 million line of credit to the Los Angeles-based retailer.
American Apparel Reports Growing Numbers: The controversial retailer is expected to post gains of 11% for same-store January numbers, which have been rising since September of last year. Other sales numbers are also strong, explains Dov Charney: “[...W]e don’t have the distractions–like labor issues at our factory–that we had in previous years.” The retailer hopes to find aid for their immense debt in the coming weeks. {WWD}
End of an Era?: Once an icon of American society, the New York Times investigates what is being done to revitalize shopping malls. New uses proposed include dog parks, office spaces, or even event spaces. {NYTimes}
Alexa Covers Elle UK: Looking sweet, Alexa Chung graces the cover of the March issue of Elle UK in Louis Vuitton. Thomas Schenk photographed Chung in some of spring’s hottest pastels. Fashion girls everywhere continue to ask, “Should I get bangs?” {Next Models Blog}
Name: Gayle Taliaferro
Occupation: Works for Trunk Archive
How would you describe your style? Retro-Feminine/ SoHo art gallery.
Which is your favorite gallery in NYC? Danziger Projects.
What was the last thing you bought? Wedge boots with lots of buckles.
