American Apparel’s Dov Charney: We're Not Going Bankrupt"
In exclusive interview with Counselor, CEO says 1st quarter ad specialty sales are
TREVOSE, PA – April
5, 2011 – American
Apparel CEO and majority stockholder Dov Charney in an exclusive
interview with Counselor magazine
said the company would not go bankrupt and that reports the company is unstable
“First of all, the
announcement about us possibly seeking bankruptcy protection is something we
did as an obligation to shareholders to explain that it’s a possibility,
however remote,” said Charney, who founded American Apparel. “In reality, to
say that the company is unstable is not accurate.”
In light of recent reports
that American Apparel is in financial trouble, Charney told Counselor Senior Editor Michele Bell that
while the company suffered net losses of $86.3 million in 2010, its ad
specialties sales were only down 1%.
Charney, who rarely gives
interviews, reached out to shed light on his unconventional company and his
role in it. He said the company’s ad specialty sales for the first quarter of
2011 are up, and that he sees a very positive trend in the sale of wholesale
merchandise to the ad specialty industry.
“Things are healthier this
year than last year, across the board,” Charney said. “We had difficulties last
year in the manufacturing process because we had to change over the workers,”
he said, referring to an immigration inspection last year that caused the
company to replace employees who appeared not to be authorized to work in the U.S. Now with 12,000 employees, the majority of which work
in Los Angeles County, Charney said that his workforce has produced more
than enough inventory for the season and that American Apparel’s commitment to
the ad specialty industry is stronger than ever.
“There’s no chance this
industry has to worry about me, or American Apparel, leaving,” Charney told Counselor. “I’ve been producing and
selling T-shirts in this industry for more than 20 years and I’m not going anywhere.
American Apparel will be producing T-shirts 20 years from now, I assure you.”
Charney said his company has over 14 million
garments in its Los
warehouse ready to ship. “The ‘can do’ entrepreneurial spirit that I love about
this industry is alive and well, and we feel it’s very important for us to be
successful as a ‘Made in the USA’ producer to the incredible ad specialty industry,”
he said. “Yes, we got hurt a little bit with the cotton prices, but that’ll
subside. American Apparel and I are survivors. We’re going to have a great year
and we’re not going bankrupt.”
For the complete interview, click
The Neal Award-winning Counselor magazine is the voice of the
promotional products industry. It is one of six B-to-B magazines published by
the Advertising Specialty Institute.
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Editor-in-Chief Melinda Ligos at
and (215) 953-3434.
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