American Apparel, the once novel, now ubiquitous clothing company has been sold to an investment firm for $382.5 million. Its new owner, The Endeavor Acquisition Corporation is a publicly traded company, and will be retaining the services of founder and CEO Dov Charney. Endeavor is committed to continuing AA's rapid retail rollout
that has reached 145 stores including 15 in New York City despite the fact that the company's growth has slowed considerably over the last year. While Charney is widely believed to be the creative force behind the brand, his management style has been controversial, and has attracted a multiple sexual harassment lawsuits. Their provocative ads, most shot by Charney have also attracted criticism for evoking an amateur porn aesthetic. In Fact, The New York Times reports that as a result of the lawsuits, American Apparel employees must
now sign a document that declares: “American Apparel is in the business
of designing and manufacturing sexually charged T-shirts and intimate
apparel, and uses sexually charged visual and oral communications in
its marketing and sales activity.” Sounds like something you would sign to work at Penthouse, not a t-shirt company. The Shophound will be interested in seeing how the company evolves as part of a publicly owned corporation when its retail network has been expanded to a projected 800 or more units (hopefully somewhere other than here).
Provocative Retail Chain Is Acquired by Andrew Ross Sorkin and Michael Barbaro (NYTimes)
previously, American Apparel Overload