According to the Forbes article, the business was so bad that Mr Charney rubbed dirt in the store manager's face. If the Malibu manager got dirt, I can't imagine what the Kentucky manager got.
Time and money are something this company doesn't have to reinvent itself to become a viable company. You're in their corner only because you're cornered. You're stuck with nowhere to go.
How many times do I need to tell you I don't own any position, long or short. I bought 2000 shares back in January because of some pumper's posts, and I thought it's $2000 I'd never see again. Ever since, I intentionally pay visits to the store whenever I visit my local mall. The store is almost always empty. Thanks to Standard General pumping in $25m, I was able to get out with a tiny little profit. You said, "Sleazy sexy clothing is very hot sellers in the US." Then, why was the store at my local mall almost always empty?? I've never seen anyone carrying an American Apparel shopping bag. If women want to feel sexy, they'd go shop at Victoria's Secret. If men want their women to look sexy, they'd go shop at Victoria's Secret. The sleazy clothes is nothing but the perverted expressions of a sleazy CEO.
If anyone wants to invest in the company, I suggest they pay a visit to the store first. Ask yourself, your spouse and your kids if anyone would want to buy anything from the store.
There's no doubt there were turnaround stories in business, but I doubt APP will be one of them. JCP was already in the process of renovating their stores before their stock price dropped drastically. If the problems of APP were simply making one bad investment or having one season of bad design, the company might be savable. But the problems with APP are fundamental. They are selling products that nobody wants....acid wash denim, pajama gowns and female undergarments that only a sleazy man would think women would desire. Their store design is no different from a thrift shop. To reinvent the company, you need money...lots of it. Which other retailers still use (creepy) mannequins for their windows? ALL their stores need to be gutted and put in a new design that is 2014. They also need people who know design and fashion trend, but all they got is a bunch of business people and the guy from Radio Shack.
You guys have been pumping out false hopes, without any real suggestions on how the company could turn around. The only reason why people would invest in APP is greed. When the stock jumped from 60 cents to $1.3, people thought it might happen again. The company lost $270m over the last four years. Why would it be different now with a new board of businessmen, when the products and store design are exactly the same as before?
mognj, why do you think APP isn't going BK? Are you in denial or do you have legit reasons? They lost $270m over the last four years. Their problems are fundamental. Which other retailers still use (creepy) mannequins for their windows? What about their wire shelves?? Their stores look like a thrift shop. They need a complete overhaul to bring people into the stores. To do that, they need money. The $25m they got from recently has put out one fire. Where else do you think they can find money to renovate the stores, so that they could stop losing money?
Their clothes are sleazy, cheesy and tacky. Look up "pajama gown" on their website. Who wears stuff like that? To rebuild the brand, they need people with good taste to bring the taste level up. All they could find was a Radio Shack dude??!!!
What are his 3 yahoo aliases? I didn't see you post for a few days, and I thought you had gone shopping at APP for an acid wash denim jacket.
If you missed the chance to load up when it was 60 cents, you've pretty much missed the only chance to make good money on the stock.
Don't forget this company lost $270m over the last four years. The $25m they received recently has put out one fire. They need many more $25m injections. The problems with this company are fundamental. They're selling products nobody want.
APP has competitors?? No retailers would want to compete with APP in the dead zone currently occupied by APP.
I don't hold any position, long or short.
Standard General also invested in RadioShack. For APP to turn around, it takes more than ousting the CEO. The style of their clothes is fundamentally wrong for 2014. People don't dress like that in 2014. Go take a look of their website. They're still selling acid wash jeans. $90 for a pair of women's acid wash jeans. $125 for a men's acid wash denim jacket. Acid wash??!!! 2014??!!! $125??!!! Quoted directly from the description of their women’s Medium Wash High-Waist Jean: “Introducing American Apparel Jeans! A classic style and wash unlike anything else that's been on the market for the last 15 years.“ It’s their way of saying it’s a style that has not been in style for the last 15 years!!
For any small investors who are interested in investing in APP, I suggest they visit one of their stores and see how many sales they make in an hour.
rogerxavier, that's exactly my point. APP has stores all over the world in 20 countries but they only had $632.98M in revenue. If you compare that to Express, which is a takeover target because the company is not doing too well. Express only has stores in the US and they're supposed to be not doing too well, but their revenue was still 2.17B(ttm), 3.42 times of APP!! Besides, it costs Express less to make a beautiful piece of garment than the ill-fitted garbage APP makes.
Paulgasiewicz, I'm sorry I shouldn't have used the term "t...t..." But I don't think any real people were offended, because no one shops at American Apparel. Pay a visit to an American Apparel and you'll agree with me....unless if you live in Kentucky, as there's not an American Apparel in Kentucky.
Have you ever read this study done by Piper Jaffray on teen spending? American Apparel has never been on the radar:
The American Apparel store here is definitely a dead zone, but Lululemon, H&M and Nordstrom are packed with the living.
I do agree with you their target clientele is the the offbeat types (the types you call hipsters.) Mainstream middle and upper class kids (which is the majority) would not wear clothes like that; those are the customers most retailers want because of their purchasing power. The offbeat hipster types make up about 3-4% of the young crowd. Out of the 3-4%, how many can afford paying $30 for a 100% polyester ill-fitted t-shirt? They could easily find a shirt like that at a thrift shop. The offbeat hipsters could easily find something similar or better at H&M for 1/3 of the price.
I don't know how old you are. Do you wear their clothes? Do your kids wear their clothes? If you dropped them off at a mall and gave them $100 to shop, I doubt they would bring back an American Apparel shopping bag. Most likely, they'd spend it at American Eagle, H&M, Express and especially Lululemon. You said you were at the Santa Monica store, but I didn't hear you say you bought anything. I didn't hear you talk about the cash register running non-stop, but if you walk into a Lululemon, their registers are almost always running non-stop.
The type who would appreciate American Apparel clothes is the very offbeat trailer trash type, but how do you expect them to afford American Apparel? Mainstream upper and middle class kids don't dress like that.
Pay a visit to an American Apparel store and you'll agree with me.
Do you live in all three cities? How do you know? People in NYC definitely don't dress like that.
Don't insult the fine state of Kentucky which gave you delicious KCF Fried Chicken!! BTW, there isn't an American Apparel store in Kentucky. Do your research first before name calling. I've done mine. If I could post a picture, I would post a picture of the store, and you'll see the only people in the store are the employees. I'm talking about on a weekend when stores like H&M and Lululemon are packed with people.
There's an American Apparel at my local mall. The store is almost always empty, and I've never seen anyone carrying an American Apparel shopping bag at the mall, meaning I've never seen a purchase at my local mall.
Go to the web site and look up Athletic Contrast Pocket Tee. Who would wear a shirt like this?? Ill-fitted. 100% polyester. Poorly constructed. And it's $30. You could buy a better looking t-shirt at H&M for $6.