American Apparel Outlines Financials
Second-Quarter Revenues $162 Million
In a preliminary release, Counselor Top 40 supplier American Apparel (asi/35297) has announced its total second-quarter revenues were flat, coming in at $162 million, according to a regulatory filing. The Los Angeles-based company also reported a net sales loss of $15 million, compared with a Q2 loss of $37.5 million a year earlier. American Apparel said it would not be able to issue a full second-quarter earnings report yet, citing the turnover of its board of directors, which needed more time to review its financial statements.
Two months ago, American Apparel ousted its CEO and Founder Dov Charney due to allegations of misconduct, which included misusing company funds and acting inappropriately toward employees, particularly women. Since, Hedge fund Standard General provided $25 million in financing and took a 44% ownership stake in the company. As part of that deal, Charney resigned his board position and four new board members were appointed. The most recent appointment was made this week when American Apparel announced Google executive Laura Lee was named one of the firm’s seven directors. Currently, Lee heads East Coast content partnerships for Google/YouTube, involving TV, film and new media.
Meanwhile, Charney is serving as a paid consultant while fighting to regain his role as American Apparel’s CEO. A special three-member committee will determine Charney’s future with the clothing firm once a company investigation is complete.
Ranked by Counselor as the 14th largest supplier in the industry, American Apparel reported 2013 North American ad specialty sales of $99.2 million, a year-over-year increase of 2.5%.