Dov Charney gave a rare on-camera interview to CNBC which aired today. In it, the founder of hipster t-shirt-and-scrunchy supplier American Apparel laughed off his company's ongoing financial troubles. Charney thinks that "you're casting it from the wrong perspective" if you point out that the company he founded is now in its third year of losing money. "From an accounting perspective...yeah, it's unprofitable," he says. "But our gross margins are as high as a luxury brand like Prada." And besides, he thinks American Apparel could "proba—maybe" turn a profit next year.
American Apparel's stock price is still trading well below $1 — down from a height of over $15 — and in addition to just effectively doubling the interest rate on its $80 million credit facility, it is paying a usurious 18% interest rate on its $116 million loan from Lion Capital. Charney called that rate "somewhat subprime."
And then there's that whole sexual-harassment thing. "The fact that I'm a target for baseless lawsuits," says Charney, "is a testament to my success...The allegations that I acted improperly at any time are completely a fiction."