Retail Detail. More Trouble for American Apparel

January 27, 2009 • Shopping


American Apparel
keeps getting into deeper and deeper trouble and it could not happen to a nicer guy. CEO Dov Charney is known to be a cad (that is putting it mildly). According to today's NYPost, a slew of internal e-mails stolen from American Apparel on Christmas Eve has caught the attention of the Securities and Exchange Commission (SEC).

The SEC has launched a probe into electronic correspondence between executives at the trendy retailer, including an alleged Christmas Eve e-mail from American Apparel's new financial chief saying the company "almost went bankrupt," sources said.

The probe is a new distraction for Charney, who is now scrambling to raise cash to pay off impatient creditors amid a brutal shopping environment. Earlier this month, Charney met with billionaire investor Ron Burkle, to request additional financing for the cash-strapped retailer.

On January 18, The NYPost reported on a series of alleged internal e-mails in which American Apparel employees bought Web ads and fed bloggers in an unusual cyber-campaign against Keith Fink, a Los Angeles attorney whose clients have sued Charney for sexual harassment and wrongful termination.

Also recently leaked to the press was an alleged e-mail in which CFO Adrian Kowalewski wrote to a fellow employee to decline a reporter's request for an interview. "We almost went bankrupt last Friday," Kowalewski wrote in the December 24, 2008 e-mail, which was intercepted and distributed to reporters days afterward.

It doesn't sound good.

Source & Photo: The NYPost

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