Yep, I made a mistake long ago on this one. I am never ashamed to say or admit when I made a mistake. When I realized my mistake I began shorting and will continue to do so until APP files bankruptcy. That's all
I am going to say. Bye-Bye Clown!
Dov could buy the company from secured creditors but why? It would be more profitable move to buy the company out of bankruptcy and have zero old debt. Yes, Dov knew how to run the company but he also lost the company millions on his own and had a problem keeping his willy in his pants. This will be another Radio Shack deal. It will climb back to around .30 and then the company will file for BK. I am sure Dov is working his butt off lining up financing and waiting for the filing.
Who cares what the assets are secured by. Let it go into BK. Dov and a partner under another company name can then buy everything for pennies on the dollar from the courts. Dov then controls the company again and all of the debt owed goes away. No brainer for Dov here. At this point there is no need to buy the company back and pay back all the debt that is owed. Not to mention having to deal with the current board.
Why would he pay full price. On December 18, 2014 the board FAILED to secure the companies future and should be FIRED.
The following occurred in December:
American Apparel Inc. founder Dov Charney, who was fired by the company this week, is working with private-equity firm Irving Place Capital on a bid to acquire the retailer, according to a person familiar with the situation.
The offer would value the company at $1.30 to $1.40 a share, according to the person, who asked not to be identified because the matter is private. The board is currently reviewing a takeover proposal, another person said.