Very possible scenario, how else would you get out of your position
I bought the assets from the old company , the public company went bankrupt
Oct. 18, 2014 10:59 AM ET | Includes: APP
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
Although the news flow died out the stock remained very volatile.
I'm going over the fundamentals to see if the story is still intact.
The earnings call was a mixed bag of good and bad numbers.
Scott Brubaker was appointed Interim CEO.
Soros fund has been buying ~160.000 shares.
American Apparel (NYSEMKT:APP) is probably the most exciting stock I have been following through 2014. With the holiday season coming up and the stock coming down close to where I initially covered it, it's time to review the situation again. There are several important new developments:
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Scott Brubaker has been appointed Interim Chief Executive Officer taking over from John Luttrell
Net sales remained flat at $162.4 million compared to $162.2 million for the 2013 period on a 6% decrease in retail comparable store sales and a 9% increase in wholesale net sales
Operating expenses decreased 7% and were $79.8 million compared to $85.8 million for the 2013 period
Standard General entered into an amendment to the loan agreement.
Bloomberg reported APP is making interest payments but this isn't officially disclosed
Soros fund initiated a small stake
Scott Brubaker new CEO
As per the SEC filing:
On September 26, 2014, the Board of Directors of American Apparel, Inc. (the "Company") appointed Scott Brubaker as Interim Chief Executive Officer of the Company and Hassan Natha as Executive Vice President and Chief Financial Officer of the Company, effective as of September 29, 2014.
Mr. Brubaker, 43, who has been working at American Apparel as a management consultant for the past month, has been a Managing Director of Alvarez & Marsal North America, LLC ("Alvarez & Marsal") since 2003. He received a bachelor's degree in finance from the University of Illinois and a master's degree in business administration from the Wharton School at the University of Pennsylvania, and has served in interim officer and other advisory roles for several specialty retailers and manufacturers during his 21 years in the industry.
Mr. Brubaker will serve in the role as Interim Chief Executive Officer pursuant to an engagement letter with Alvarez & Marsal. The Company expects to pay Alvarez & Marsal fees ranging from $125,000 to $250,000 per month for the services of Mr. Brubaker and certain other finance and accounting personnel.
It's not a good sign there is another management change so soon after Charney was dismissed. On the bright side, Brubaker has been working at the company as a consultant and apparently has a finance background which is exactly what American Apparel needs at this point in time. The brand has been built and any expansion plans need to go on the backburner until debt has been paid down to a more comfortable level.
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Crumbs Bake Shop $CRMBQ to liquidate
All Categories, All Categories, Microcap, Stocks by Michael Goode
Despite the huge run up in the shares of Crumbs Bake Shop (CRMBQ) on the news that Crumbs has reopened one of their shuttered stores and will reopen a bunch more soon, Crumbs Bake Shop Inc no longer has anything to do with the Crumbs stores or brand and will not benefit from the store openings. In fact, Crumbs Holding Company (CRMBQ) filed a motion (PDF) on October 1st to change from chapter 11 bankruptcy to chapter 7 (liquidation) and stated in the application that:
The Debtors no longer maintain active business operations and have only operated their businesses for the purpose of maximizing the value of the Debtors’ assets, resolving certain claims and winding down their affairs for the benefit of the Debtors’ creditors. The Debtors’ remaining assets include, among other things, potential causes of action including, among others, avoidance actions under the Bankruptcy Code. The Debtors have determined that the best interest of all creditors will best be served by converting these
Chapter 11 cases to cases under Chapter 7 of the Bankruptcy Code so that a Chapter 7 trustee may investigate and pursue those causes of action to maximize recoveries while reducing the continuing costs of the administration of these estates.
Up to date filings in the bankruptcy case can be found on the trustee’s website.
Unlike the last news spike on the completion of the sale of essentially all of Crumbs’ assets to Lemonis-Fischer Acquisition Company (LFAC), I did not immediately short the spike. I would really love to short CRMBQ now as its price action is toppy but my brokers will not let me short it for some reason that I cannot fathom.
AND WATCH THEM WALK IT DOWN TO AT LEAST 3.40, I personally like to see it go lower after not playing my cards RIGHT, I drank the cool aide and bought and held for 3 yrs luckerly with good entry points, but after the frozen vial STORY and wall street running away it leaves me no choice but to trade this thing. I was trying to save 25 % and not go partners with the tax man but its the only play and it #$%$ me off on how many freak-in runs I missed . JEEZ
Robbins Arroyo LLP is Investigating the Officers and Directors of Ampio Pharmaceuticals, Inc. (AMPE) on Behalf of Shareholders - See more concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.