Watch out, America. Dov Charney is taking a road trip. He's traveling through the South as we speak, and is obviously trying to convince everyone that American Apparel is staging a comeback/recovery. He's been in the media a bit lately--like that extended interview he did with Flaunt, telling the indie mag that American Apparel was going to make $20 million in earnings before interest, and was on track to double that in 2012.
WWD caught up with Charney in Texas, where he told the trade, "We're getting our groove back a bit." But are they? Let's review the company's recent financial history.
Yesterday WWD reported American Apparel's fourth quarter sales, which were pretty darn good: a 10% increase in revenues. The company can thank strong online sales, its wholesale business (like that recent deal to sell through ASOS), and a recent Groupon sale in which they sold 100,000 deals. While this is good news, the company still owes about $160 million and is having a hard time finding funding.
American Apparel's latest talks with Colbeck Capital broke off because of recent and frequent management departures--see: the hasty exits of acting president Tom Casey and chief business development officer Marty Staff. The company still faces some serious hurdles.
But they're not giving up. Charney told WWD of his recent road trip, "We're methodically going through each door, inspecting them and looking for ways to improve productivity." (Hopefully he’s also going through some of his own personal doors and will avoid any further sexual harassment controversies; the last thing a beleaguered company needs is another lawsuit splashed all over the morning news shows.)
Do you want to see American Apparel succeed?