New American Apparel President Is Experienced In Bankruptcies (Updated)
LatestAmerican Apparel wasn’t kidding about that new management stuff: it just hired a brand-new acting president. He is Tom Casey, who was Blockbuster’s executive vice president and CFO until just before Blockbuster, um, went bankrupt. This should work out great!
Dov Charney said, “Tom’s extensive strategic experience and financial knowledge will help us build a great future for the Company.”
According to spokesperson and legal counsel Peter Schey, the company is pledging to not alter its manufacturing practices. “We’re not going to run offshore, fire workers, slash wages, or close down stores for short-term gains,” says Schey. In its last quarterly report, American Apparel had to cop to a $42 million quarterly loss and warn investors that there is “substantial doubt that we will be able to continue as a going concern.” How will American Apparel meet these…unique…challenges? “In a way that maintains the ethics and principles on which the company was built.”
UPDATE: We’ve added Casey’s picture. And as for Charney’s future role at the company he founded, Schey says, “Dov Charney will spend somewhat less time on administrative matters and more time building revenue.”
Casey’s salary starts at $400,000 a year, and in the future he’ll be eligible for a bonus of up to 100% of that salary. The arrangement seems fairly temporary by design — Casey’s initial term as acting prez is 15 months — and all Casey has to do to qualify for a $75,000 bonus this year is stick it out in the position through December 31 and get together a “strategic plan” that meets with board approval.
“Its [sic] a privilege to work with Dov Charney,” Casey said in a statement. We’d harp on the copy-editing, but with almost two years of plummeting comp sales, SEC and Department of Justice investigations, “material weaknesses” in its internal accounting and controls, sexual harassment scandals, and shareholder lawsuits, we’re sure punctuation is a low priority.
Earlier:
American Apparel’s Bankruptcy is Inevitable
American Apparel’s Finances Are Getting Even Worse
Today’s The Day American Apparel’s Number Is Up
American Apparel Is On Notice, Courtesy of New York Stock Exchange
And Now American Apparel Is Being Sued By Its Investors
American Apparel Saved From Bankruptcy — For Now
Related:
At American Apparel, The Federal Subpoena And SEC Probe Aren’t Even The Worst Part [BNet]
Blockbuster Declares Bankruptcy [Business Insider]