For months now, it's looked like the kitschy little hipster label that seemed to be taking over the world with its semi-porn advertising might fall victim to the recession. But here in late March, it looks like American Apparel as we know it might just survive. Taking what appears to be a pretty huge risk, CEO and founder of AA Dov Charney reportedly purchased $2.67M of stock in his company. All told he got 855,000 shares -- 460,000 of those he bought on margin.
Shortly after AA got $80M dollars from Lion Capital to keep the chain's 260 stores afloat, things are immediately starting to looking up. Charney has made some personal loans to the company before, and he could be trying to bluff here -- but $2.67M sure seems like more than just a token move.
Despite his appearance and controversial pervvy treatment of his staff, we know Dov's not dumb. So what does he know that we don't know? He apparently expects to keep selling us inexpensive, quality v-necks for quite some time. Do you think American Apparel is out of the woods?
Guess getting kicked out of SF's hipster-laden Mission District didn't hurt the company too much.